Bitcoin has recently experienced a significant decline, resulting in its drop to the 12th largest asset globally by market capitalization. According to CompaniesMarketCap, Bitcoin's price fell to $81,000 earlier today and continued to decrease, with current trading at approximately $77,300. This marks an 8% drop over the past 24 hours, as reported by TradingView.
The latest downturn has led Bitcoin's market capitalization to approximately $1.5 trillion, pushing it behind Tesla, which now holds a valuation of around $1.6 trillion. Consequently, Tesla has moved into the 11th position in the asset rankings. Earlier this week, Bitcoin had already fallen from the top 10 list of global assets, ranking now behind entities like Meta Platforms and Taiwan Semiconductor Manufacturing Company.
This sharp correction in the market has triggered a wave of deleveraging, erasing roughly $2.5 billion from leveraged crypto positions in just one day, as per CoinGlass. Most of the losses were from long traders, who faced approximately $2.4 billion in liquidations, affecting more than 408,000 trading positions.
Investors should approach Bitcoin trading with caution, especially in light of the recent volatility. The market's response can often be unpredictable, and understanding the dynamics of such a rapidly evolving asset class is crucial for effective investment strategies. Staying informed on market trends can help investors navigate these fluctuations more successfully.