The cryptocurrency market is going through a tough time, with traders facing heavy losses as nearly $1 billion worth of liquidations hit the market. Meanwhile, the overall crypto market cap is down to $2.62 trillion, with bitcoin suffering the most loss. This sudden crash has triggered massive fear in the crypto industry, pushing the Fear & Greed Index down to 17, signaling Extreme Fear.
Crypto Market Wippes Almost $1 Billion in Liquidation
Recent data from Coinglass reveals that around 320,374 traders have been liquidated in the last 24 hours, with total losses reaching $907.7 million. Suffering the most losses were the long traders, who were betting on prices to rise, suffered the most, losing $72 million.
However, short traders, who expected prices to fall, weren’t safe either, with losses totaling $179 million. However, the largest single liquidation order happened on Bybit, where a BTC/USD trade worth $5.26 million vanished in an instant.
Meanwhile, Bitcoin (BTC) took the biggest hit, with $318.2 million in positions wiped out. Of this, $235 million was from traders who expected prices to rise, while $82.6 million came from short sellers..
Key Reasons Behind the Market Drop
One major reason is rising fears of a recession. In a recent Fox News interview, U.S. President Donald Trump spoke about an economic “transition period,” making investors uneasy about what lies ahead.
Another big factor is the massive Bitcoin transfers from Mt. Gox. The defunct exchange recently moved 11,834 BTC worth $931.1 million, followed by another 332 BTC worth $26.6 million. This raised fears of more selling pressure in the market.
Lastly, a large number of Ethereum whales have seen depositing 7,000 ETH worth $12.9 million to Kraken, while another moved 21,000 ETH to Binance, signaling possible sell-offs.
Bitcoin and Ethereum in Trouble
As of now, Bitcoin is trading around $81,632 and is close to its key support at $78,000, raising worries among investors. Meanwhile, Arthur Hayes, co-founder of BitMEX, warned that Bitcoin could potentially drop further, testing levels between $70,000 and $75,000, adding more uncertainty to the market.
Ethereum isn’t doing any better, as its price dropped 8.4% in the last 24 hours, now trading at $1,915 the lowest level since late 2023.
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