Panic selling has gripped the altcoin market, with Ethereum prices falling by 10-20% after Bitcoin's plunge to $55,000. Liquidations hit record highs, impacting traders.

Altcoin Market in Turmoil

The altcoin market's panic selling has only intensified as Bitcoin's price plummeted to $55,000. With the loss of the critical support of $3,000, the prices of Ethereum and nearly all of the top ten altcoins have dropped by 10–20%.

According to data from Coinglass, 221,704 traders were liquidated in the past 24 hours, causing a big shakeup in the crypto market. Binance had the highest single liquidation order, at $18.48 million, in the ETH/USDT trading pair.

Massive Liquidations in Ethereum

Also, compared to Bitcoin, Ethereum liquidations have surpassed them on the hourly chart. The 24-hour total of ETH liquidations is $107 million, and the total for the past hour is $44.5 million. Other altcoin liquidations have also increased dramatically.

The price of Ethereum (ETH) has responded badly and is mostly in line with the wider market correction despite all the events suggesting that a spot Ethereum ETF will be available by the end of July.

One Ethereum developer, Anthony Sassano, has spoken out about the ETH market overhang and how it could lead to withdrawals from Grayscale's ETHE. Sassano brought attention to the fact that ETHE has been trading at a premium after months of being traded at a discount of less than 2%. This raises the question of how many investors are holding out for the ETF conversion before selling.

Coingape shares the unpredictability of ETHE's pricing structure after the changeover was also brought out by Sassano. In order to entice investors to Grayscale's mini-trust, he proposed that fees be significantly reduced or possibly temporarily eliminated.

The crypto market's precipitous fall has sparked widespread FUD (fear, uncertainty, doubt) on various social media sites. The number of references of "sell" has surpassed those of "buy" hourly, according to on-chain data provider Santiment.

This trend has occurred multiple times in the last day, with the ratio of negative to positive comments reaching its peak in 2024.

According to Santiment, daring traders may be able to take advantage of the current climate of pessimism by buying into the market on the other side of the popular fury.

Memecoins Bear the Brunt

Out of all the altcoins, the memecoin sector has taken a nosedive, with the biggest memecoins losing 17-25% of their value. When this meme coin frenzy finally dies out, or if these coins make a comeback, it will be fascinating to see.