Bitcoin, the leading cryptocurrency by market capitalization, led a market-wide sell-off, causing nearly $200 million worth of long position liquidations in the last 24 hours. The price of Bitcoin has fallen under $116k. It currently sits at $122,776, but it did dip to $115,356 recently after reaching an all-time high of $123,100 on July 14. This downturn has created a cascading impact on the overall crypto market, driving many traders away.

Bitcoin's Price Correction and Liquidation Impact

Since it hit its all-time high, Bitcoin has only gone down. The recent plunge liquidated a staggering $140.06 million in Bitcoin long positions. This was an important piece in the overall market turbulence. That liquidation event was enough to kick 213,729 traders out of the market.

The cumulative liquidations, over Bitcoin and other altcoins, amounted to a shocking $731.93 million. This epic crypto market crash highlights the extreme volatility of the overall crypto market and the dangers of leveraged trading.

Market Dynamics and Large-Scale Bitcoin Transfers

The hammer drop was an 80,000 BTC sale by Galaxy on Bitcoin’s price. This transfer is likely one of the largest national Bitcoin sales in history. Such large-scale transactions inject tremendous uncertainty into the market. We have seen investors frequently overreacting to the abrupt new supply, driving down prices even further.

Even with the recent pullback, the sentiment surrounding the marketplace is still bullish on the entirety of the cryptocurrency marketplaces. Traders are defensive against sudden short-term instability. They still ship away an optimistic long-term outlook for the potential of BTC and other digital assets.

Bullish Sentiment Despite Price Drop

The Crypto Fear & Greed Index, which tracks overall market sentiment, is showing greed at 70 right now. This suggests a market that is deeply in the throes of “greed.” Even with the recent price downturn, smart money isn’t giving up on this emerging asset. They’re betting that Bitcoin will rebound and return to its long-term upward trend.

Here’s why bullish sentiment may be optimistic. These have included increased institutional adoption of Bitcoin, increasing recognition of its value as a store of wealth, and ongoing deployment of innovative applications and use cases for the cryptocurrency.