Market Drenched in Red
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Bitcoin (BTC) fell below $100,000 for the first time in six months, touching a low of $99,075, according to CoinGecko.
Despite a brief rebound, BTC was last seen trading around $101,167, marking a 5% daily loss and over 10% decline in the past week.
Since its all-time high of $126,000 in early October, Bitcoin has lost nearly 20% of its value. -
Ethereum (ETH) saw an even sharper drop, plunging from $3,649 to $3,097 — its lowest point since July.
ETH is currently trading near $3,260, down more than 9% on the day, making it the worst performer among the top 10 cryptocurrencies by market capitalization. -
Altcoins such as XRP, Solana, and BNB also joined the sell-off, though none suffered as steep a loss as Ethereum.
Over $2 Billion in Positions Wiped Out in 24 Hours
Data from CoinGlass shows that $2.02 billion worth of crypto positions were liquidated within a single day, including $1.63 billion from long positions — bets on price increases.
Ethereum led the liquidation wave with $655 million wiped out, surpassing Bitcoin’s $614 million in liquidations.
Maja Vujinovic, CEO of FG Nexus, commented:
“Too many traders were using leverage to bet on rising prices. If Bitcoin can stay above the $100K–$105K range, this may just be a healthy reset. Otherwise, we could see a deeper drop ahead.”
Fragile Market Sentiment
Mike Maloney, CEO of Incyt, compared the situation to “an echo of Black Friday (October 10),” noting that while the market briefly rebounded after a sudden plunge, anxiety remains high among institutional investors.
The sell-off coincided with a decline in U.S. stock indices, as both the Nasdaq and S&P 500 closed lower, with tech stocks under pressure amid broader macroeconomic uncertainty.
Key Factors Behind the Decline
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Ongoing trade tensions fueled by Donald Trump’s recent threats against China.
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Shrinking market liquidity and growing pessimism surrounding the possibility of a third U.S. interest rate cut in 2025.
Although the $2 billion liquidation wave is massive, it still falls short of the record $19 billion wiped out in October. Still, the latest drop has clearly shaken investors, prompting a shift toward more cautious trading strategies in the days ahead.
