The cryptocurrency market experienced a major downturn recently, with $566 million worth of liquidations occurring within just 24 hours. This sharp drop in value came after the shocking $1.4 billion Bybit hack, which sent traders into a panic sell-off and led to a significant market correction. The impact of the hack reverberated across the market, with notable altcoins such as XRP, Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB) all experiencing substantial losses.

Bybit Hack fuel Market Chaos

The Bybit hack, which saw the theft of $1.4 billion worth of digital assets, triggered massive liquidations in the crypto market. According to data from CoinGlass, the breach impacted 151,222 traders, with the majority of the losses coming from long positions. Traders holding long positions were hit the hardest, suffering $321 million in liquidations. Short positions also saw significant losses, totaling $234 million.

The largest liquidation event occurred on Binance, with a BTC/USDT trade worth $12.14 million. This massive sell-off caused Bitcoin (BTC) to drop 2%, bringing its price down to $96,170. Additionally, Bitcoin’s market dominance slipped by 0.47%, settling at 61.09%. A total of $133 million in Bitcoin liquidations further illustrated the severity of the sell-off.

Altcoins Suffer Heavier Losses

While Bitcoin faced its own setbacks, altcoins took even steeper dives. XRP, which had been one of the more stable performers, dropped by 3% in the aftermath of the hack. Solana (SOL) experienced a 3.5% decline, while Dogecoin (DOGE) saw a 4% drop. The hardest-hit altcoin was Cardano (ADA), which lost 5% of its value in just one day. Shiba Inu (SHIB) also slid by 2%, contributing to the overall market decline.

Despite these significant losses, the global crypto market cap only saw a 2% decrease, reaching $3.17 trillion. However, this still left traders on edge, as fears of further losses persist, and uncertainty surrounds the future direction of the market.

Top Crypto Gainers Amidst the Chaos

In contrast to the widespread sell-offs, a few cryptocurrencies managed to stay in the green despite the turbulent market conditions. Bitget Token (BGB) emerged as the top gainer, rising by 4.7% to hover around $5. Maker (MKR) also saw a 4% gain, trading near $1,513. Ethena (ENA) was another standout, increasing by 3.41% amid the market’s broader losses.

Major Crypto Losers and Market Volatility

The day’s major losers were led by Jito (JTO), which saw the steepest drop of 16.5%. Berachain (BERA) followed closely with a 13.6% decline, while Stroy (IP) suffered a 12% drop, trading around $4.40.

As the market faces high volatility and lingering concerns about security, traders remain cautious. The future trajectory of the crypto market will depend on how quickly confidence is restored among traders and investors. With continued uncertainty and fears of further hacks or regulatory challenges, many are wondering whether the market will stabilize or continue its downward trend.

In Conclusion

The Bybit hack has served as a harsh reminder of the risks involved in the crypto space, especially when it comes to security vulnerabilities. While some tokens managed to stay in the green, the majority of the market saw significant liquidations, leaving traders nervous about the next steps. The outcome of this market correction remains to be seen, but for now, caution is the name of the game.