Crypto Market Bloodbath, Over $2 Billion Liquidated

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Market Drenched in Red

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

Ongoing trade tensions fueled by Donald Trump’s recent threats against China.
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.

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