$600 Million Wiped Out as Bitcoin and Ethereum Lead Massive May 13 Crypto Crash

 On May 13, the cryptocurrency world experienced a significant jolt as market-wide liquidations surpassed $600 million in just a few hours. This sharp correction was largely driven by steep declines in both Bitcoin and Ethereum, the two leading digital assets.

Bitcoin saw its price sink below $61,000, undoing much of its recent upward momentum. Ethereum followed suit, dropping close to $2,800, triggering massive sell-offs across multiple exchanges.

According to data from liquidation analytics platforms, more than 250,000 traders were caught off guard and liquidated during the crash. One of the largest positions closed involved over $5 million in a long Bitcoin trade, showcasing how quickly leveraged positions can collapse in a falling market.

Several contributing elements led to the meltdown. Investors grew wary due to weak global economic indicators, uncertainty in the tech sector, and growing fears of stricter crypto regulations in the United States. These external pressures added fuel to internal market weaknesses, amplifying the sell-off.

The pace of the decline left little room for recovery. Within hours, crypto valuations collectively fell by billions of dollars. The fear index spiked, and market sentiment flipped dramatically from stable to extremely bearish.

Smaller cryptocurrencies weren’t spared either. Projects like Solana, Avalanche, and Cardano posted double-digit losses, extending the market correction far beyond just the top coins.

This incident stands as a stark reminder to investors about the dangers of high leverage and the unpredictable nature of crypto trading. Seasoned participants are now reassessing their strategies, while newcomers are being introduced to the harsh realities of a volatile market.

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Conclusion:

The May 13 sell-off served as a major setback for the crypto market, with over $600 million in liquidations. As Bitcoin and Ethereum stumbled, the ripple effect was felt across the entire industry. For investors, it's a crucial lesson in risk management and market awareness moving forward.