The cryptocurrency market has experienced a significant downturn, with over 210,000 investors affected by a massive liquidation of $716 million within the last 24 hours.

Key players in the market, known as whales, have been seen adjusting their positions amid this correction. They have been taking profits on long positions in Ethereum (ETH) and Ripple (XRP) while also opening short positions on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). These actions indicate a cautious approach by large investors and suggest potential increased volatility in the market.

The recent market correction led to Bitcoin dropping to $101,000, Ethereum falling by 4% to $2,400, and Solana decreasing by 6% to around $175. The high liquidation figures were a result of the market overheating the previous week, driven by Bitcoin surpassing the $100,000 mark and Ethereum surging over 40% to $2,500. This surge in market greed was indicated by the Fear & Greed Index reaching 78.

While the decline in major cryptocurrencies caused significant pressure on the market and led to losses for many retail investors, whales took advantage of the situation to secure profits and make strategic adjustments. Some whales opted to shift towards shorting positions to benefit from the market trend.

Despite short-term market pressures from whales adjusting their positions, long-term indicators suggest positive prospects. Analysts point to a potential supply shock for Bitcoin and signals indicating a shift in market dynamics implying renewed potential for altcoins following Bitcoin's dominance peak.