The cryptocurrency market has faced a massive sell-off, leading to nearly $1 billion in liquidations within the past 24 hours. According to data from Coinglass, 334,404 traders saw their positions wiped out, totaling $947.7 million in losses. Long positions were particularly affected, with $742.2 million liquidated, while short positions accounted for $205.5 million.
Bitcoin and Ethereum Lead Liquidations
Bitcoin (BTC) bore the brunt of the liquidations, with $317.9 million wiped out, including $242.1 million from long positions and $75.8 million from shorts. Ethereum (ETH) faced a similar fate, with $248.2 million in liquidations, $196.4 million of which stemmed from long positions. This significant market downturn highlights increased volatility and uncertainty among traders.
Whale Movements and Mt. Gox Transfers Raise Concerns
Adding to the market’s turmoil, major cryptocurrency movements have intensified fears of further sell-offs. Arkham Intelligence reported that defunct exchange Mt. Gox transferred 11,834 BTC—worth approximately $931.1 million—to an unknown address. Shortly afterward, another transfer of 332 BTC valued at $26.6 million was recorded. These transactions followed an earlier movement of 12,000 BTC, fueling speculation about impending sell-offs.
Meanwhile, Spot On Chain observed that an Ethereum ICO whale deposited 7,000 ETH, worth $12.9 million, to Kraken. Despite this transaction, the whale still holds 30,070 ETH, valued at $54.4 million. Additionally, Longling Capital moved 21,000 ETH ($38.8 million) to Binance, while another whale sold 25,800 ETH at a loss of $31.7 million to avoid liquidation.
Trump’s Recession Warning Triggers Market Panic
The latest wave of market volatility was exacerbated by comments from former U.S. President Donald Trump, who hinted at an impending recession. His remarks, made in an interview with Fox News, sent shockwaves through global financial markets. The Kobeissi Letter noted that the decline erased the post-U.S. Reserve announcement rally, leading to a $1.3 trillion dip in the crypto market from its December 2024 peak.
Bitcoin briefly fell to $76,600, marking its lowest level in four months, before rebounding to $79,939, still down 3.2% on the day. Ethereum also faced a steep decline, dropping 8.4% to $1,895, its lowest level since late 2023.
Also Read: Bitcoin Bounces Back Above $92K, But ‘Extreme Fear’ Still Grips Crypto Market
As market uncertainty looms, traders remain on edge, closely monitoring further developments that could dictate the next major price movement.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
