Over the course of 24 hours, the cryptocurrency market suffered severe declines, with nearly $500 million wiped from traders' portfolios due to forced liquidations. Bitcoin (BTC) plummeted to $64,569 and Ethereum (ETH) plummeted to $3,355, resulting in liquidations of more than $482 million.
This impact was most severe on long positions.
Crypto traders speculate that this is the final drop.
Both mainstream and emerging digital assets have suffered during this period of market turbulence. The total number of affected traders reached 192,853.
Ethereum was hit the hardest , with a total liquidation of $92.52 million, according to data from Coinglass. Bitcoin and Dogecoin (DOGE) followed with liquidations of $73.26 million and $60.35 million, respectively.
Read more: How to Trade Crypto on Binance Futures : Everything You Need to Know
The largest single liquidation event occurred on Binance, where one trader lost $6.44 million on a buy Ethereum trade. This demonstrates the volatile and speculative nature of the cryptocurrency market, especially during periods of market stress.
Despite these difficulties, Bitcoin showed resilience by slightly recovering to $65,500. Ethereum also showed some recovery, trading at $3,440. This rapid rebound is a hallmark of the cryptocurrency market and reflects volatility and the quick response of investors.
Analysts and traders have different views on the direction of the market. Renowned analyst Crypto Rover predicted that if Bitcoin surges to $73,000, more than $10 billion in short positions could be liquidated. Meanwhile, trader Chimpju predicted a major reversal in the market.
“This is the last drop. A drop to lure all the bears into the market. Next we will see a liquidation candle that will send the bear market back into the shadow zone,” ChimpZoo said calmly.
Fund outflows from Bitcoin exchange-traded funds (ETFs) further complicate the market scenario. According to Farside Investors, several funds have recorded notable outflows. Fidelity's Wise Origin Bitcoin fund recorded outflows of $92 million, and the ARK 21Shares Bitcoin ETF recorded outflows of $50 million.
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In contrast, the Bitwise Bitcoin ETF recorded a small inflow of $2.9 million, showing mixed investment sentiment across various investment vehicles. Meanwhile, BlackRock's iShares Bitcoin Trust (IBIT) has yet to release liquidity data for Monday.
All ETFs except IBIT recorded outflows totaling $145.9 million on Monday.
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