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Why Shiba Inu Crashed: $2M Liquidations Amid Widespread Crypto Market Losses

Shiba Inu sees $2M liquidations, contributing to ongoing market instability.

Shiba Inu has dropped 21% this month, leading to $2 million in liquidations, highlighting its volatility.

Sharp Decline for Shiba Inu in July

Another wave of losses has hit the cryptocurrency market. Shiba Inu is among the most hit coins by the current selloff, with prices falling by more than 21% so far this month. Compared to its June 1st peak, SHIB has fallen 46% since then.

As a result of this pessimistic outlook, Shiba Inu was one of the most unfortunate victims of the market-wide crash. So that you know, the reason behind this sharper decline is because it is more volatile.

With a 7.11% decline this morning, SHIB has already lost numerous support levels and is trading at $0.00001359. The $0.000015 and $0.000014 levels are part of these.

Market Liquidations Hit Shiba Inu Hard

These thresholds were the hope of most investors who had long holdings on Shiba Inus for the defense they could mount. Liquidations have been faced by the majority of these long positions since this breach.

The public's attention was drawn to a big liquidation that contributed to this figure by market tracker @CryptoCrunchApp. Curiously, at 3 AM (UTC) today, when SHIB went to the low end of $0.000014, a market whale had a long position of $980.7K wiped out.

Factors Behind the $2M Liquidations

But as compared to market data overall, Shiba Inu liquidations are minimal. There have been $2.31 million in liquidations of SHIB in the last 24 hours. But that's just 0.3 percent of the $679 million in market liquidations altogether.

Selling pressure surrounding Bitcoin is a major cause of market instability. According to data released by CoinMarketCap (via EconoTimes), Bitcoin has reached a trading plateau and is presently trading at $54,500.35 as of the publication of this article.

As stated by eToro market analyst Josh Gilbert, much of the selling might be traced back to worries that originated from Mt. Gox's debts to its creditors.​

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