Leading cryptocurrencies sank further Sunday, erasing gains made from the relief rally in the days prior.
What Happened: Bitcoin fell below $56,000 again, following an optimistic rally that saw the digital asset rise well beyond $58,000 the night before.
The second-largest cryptocurrency, Ethereum, also dropped below $3,000 after a temporary respite.
The market has been under stress, exacerbated in part by planned Bitcoin sell-offs by defunct cryptocurrency exchange Mt.Gox this month as part of its repayment obligations to its creditors, and potential sales by the German government.
The slump in the last 24 hours caused $202 million in liquidations, with $171 million in long bullish bets getting wiped out.
Bitcoin's Open Interest dropped 4.67% in the last 24 hours. A fall in OI, complemented by a fall in price, indicated the capitulation of long positions, igniting hopes of a bullish recovery.
The Cryptocurrency Fear & Greed Index ...