Celestia Crashes 7.6% Amid Broad Market Risk Off

Celestia's price has dropped by 7.6% over the past 24 hours, and 3.6 percentage points in just six hours. This decline can be attributed to a combination of factors, including broad market risk off and deleveraging.

According to CoinMarketCap, total crypto market cap is down 2.71% in 24 hours, while altcoin market cap has decreased by 2.18%. The recent liquidation of over 101,000 leveraged positions worth around $114M to $202.7M also contributed to the selloff.

Celestia's price drop can be seen as a natural correction after its strong rally driven by anticipation of an upcoming upgrade. The token's economic model, which shows a large gap between issuance and on-chain fee demand, has been scrutinized in recent social media posts.

The current market environment is characterized by risk off and deleveraging, with Bitcoin trading lower and futures open interest near yearly lows. This suggests that traders are cutting risk and reducing leverage, leading to a sharper pullback for mid-cap altcoins like Celestia.