Key Highlights:
- Bitcoin’s sharp 7% price drop sparks massive liquidations across the cryptocurrency market.
- Over 316,000 traders liquidated, with $881 million wiped out in 24 hours.
- Altcoins like Ethereum, Solana, and XRP also hit hard, intensifying market turmoil.
Bitcoin’s Sudden Plunge: $900M Crypto Market Wiped Out
The cryptocurrency market faced a seismic shock as Bitcoin (BTC) saw a sharp 7% price drop, tumbling to $97,905. This dramatic decline has sparked liquidations of nearly $900 million in leveraged positions, spreading chaos across the broader crypto ecosystem.
Over 316,000 Traders Liquidated
According to data from Coinglass, over 316,000 traders faced liquidations in the wake of Bitcoin’s price crash, amounting to a staggering $881 million.
- Long positions bore the brunt, accounting for $820 million of the total.
- Short positions faced $60 million in losses.
- The largest single liquidation occurred on the HTX exchange, where a massive $98.46 million position was wiped out.
Crypto Market Sentiment Turns Neutral
The Crypto Fear and Greed Index now reads 55, signaling a “Neutral” sentiment among traders. This shift indicates growing uncertainty, with many investors now hedging their bets by taking short positions against Bitcoin.
Bitcoin Battles Critical Support at $98,000
Bitcoin’s immediate challenge lies in holding its critical support level of $98,000. Losing this level could trigger further corrections, adding to the bearish sentiment.
- Upcoming events, such as the Federal Open Market Committee (FOMC) meeting on January 29, are amplifying market anxiety.
- Former BitMEX CEO Arthur Hayes predicts a deeper correction to $70,000–$75,000, followed by a potential bull run to $250,000.
Altcoins Join the Bloodbath
The sell-off wasn’t limited to Bitcoin. Major altcoins suffered significant losses:
| Cryptocurrency | Liquidations | Price Drop (%) |
|---|---|---|
| Ethereum (ETH) | $110 million | -9% |
| Solana (SOL) | $38 million | -12% |
| XRP | $33 million | -10% |
| Dogecoin (DOGE) | $24 million | -11% |
| Chainlink (LINK) | $15 million | -8% |
This widespread liquidation reflects the fragility of the crypto market amid external pressures like global monetary policy shifts.
Conclusion: What’s Ahead for the Crypto Market?
With Bitcoin testing critical support levels and market sentiment turning neutral, the coming days are crucial for traders. As altcoins reel from the fallout, all eyes are on the FOMC meeting and its potential impact on the financial landscape.
Traders should remain cautious and employ effective risk management strategies as the crypto market navigates this turbulent phase.
