The cryptocurrency market appears to have reversed all of its gains from less than 24 hours ago, following the Bitcoin price trend, which fell below $37,000 today.
Following a sharp increase in the price of Bitcoin (BTC) on May 4 when Fed Chairman Jerome Powell ruled out more interest rate hikes, the crypto market has already lost all of its intraday gains from the favorable reaction and has even accrued further losses.
Bitcoin (BTC) hit a two-month low of $36,520 on Bitstamp on May 5, while the global crypto market cap had over $100 billion wiped out in four hours, according to TradingView, as the sell-off intensified.
Bitcoin (BTC) and Ethereum (ETH), the two most popular cryptocurrencies, have lost roughly 6% and 7% in the last 24 hours, respectively. The vast majority of other major cryptocurrencies have also declined. Solana (SOL), Polkadot (DOT), Terra (LUNA), and Avalanche (AVAX) have all climbed 8%, 6%, 11 percent, and 8% in the previous 24 hours, respectively.
The global stock market opened the day in a sea of red, which influenced the downfall. The Dow Jones Industrial Average (DJI), S&P 500 (SP500), and Nasdaq Composite Index (COMP.IND) are all down 2.9, 3.1, and 4.4 percent, respectively.
Traders speculating on the price of Bitcoin and other cryptocurrencies falling in recent hours prompted a cascade of enormous long order liquidations, accounting for 81.6 percent of total liquidations, according to coinglass statistics.
The long orders liquidation resulted in 100,550 traders liquidating across the cryptosphere in just 24 hours, bringing the total value liquidated to more than $360 million.
Bitcoin has been volatile in recent weeks, losing four weeks in a row as April concluded with the lowest returns in history, and the trend looks set to continue in May.