The crypto market has experienced a brutal crash, with over $620 million wiped out in liquidations over the last 24 hours, leaving traders reeling. A sharp decline in Bitcoin’s price, which plummeted to as low as $80,000, triggered a massive sell-off, catching thousands of leveraged traders off guard. The market bloodbath, which affected all major digital assets, led to the liquidation of 225,000+ positions, with Bitcoin taking the lion’s share of the losses.
Bitcoin’s Collapse Fuels Widespread Liquidations
The price of Bitcoin has dropped steeply, causing forced liquidations to soar. According to data from Coinglass, the total liquidation amount reached $620.5 million, with long positions suffering the most. Bitcoin’s long traders lost $529.4 million, with short positions contributing an additional $91.1 million.
The worst hit was Bitcoin, with $239.5 million in long positions wiped out in the last 24 hours. A $32 million position on Binance was the largest single liquidation order. The crash has raised alarms, with analysts highlighting that Bitcoin’s recent liquidations are now surpassing those witnessed during major events like the FTX and Celsius collapses.
Arthur Hayes Predicts Further Downside for Bitcoin
Bitcoin’s price continued to slide, now trading at $82,629, a 3.9% drop in the past day. Former BitMEX CEO Arthur Hayes has warned that Bitcoin could retest the $78,000 level. If that support fails, the next critical level is $75,000, where massive open interest could lead to further volatility. Hayes emphasized that the downturn was exacerbated by the growing concerns surrounding recession and the unexpected consequences of President Trump’s recent Bitcoin policy orders.
Ethereum, Whales, and the Broader Crypto Landscape in Turmoil
Ethereum (ETH) has not been spared, with $108.5 million in liquidations and a 5.3% drop in price, now trading at $2,062. The broader market has taken a massive hit, with the total crypto market cap down by $148 billion. Whales holding large amounts of Ethereum are facing liquidation risk, with some seeing their positions nearing critical health levels. One whale holding 65,675 ETH, worth $135.8 million, is particularly at risk, with liquidation looming if the price continues to fall below $1,931.
Despite the chaos, a few whales have profited from the downturn. A trader who successfully shorted Bitcoin during its recent price drops has accumulated an unrealized gain of $7.5 million, highlighting the potential for profit even in times of market distress.
Also read:Analyst Warns of Bitcoin Drop as Bear Market Looms Amid Fed’s Cautious Stance
