The cryptocurrency market faced significant losses as the unwinding of leveraged positions drove sentiment to its lowest since early summer, despite a slight rebound in Bitcoin and Ethereum prices.
The global cryptocurrency market capitalization dropped by $300 billion this week due to the unwinding of leveraged positions, which caused over $3 billion in liquidations. Bitcoin and Ethereum saw slight price rebounds after a report indicated slower inflation growth. Analysts see the decline as a healthy correction but expect continued downward pressure in the short term.