- In the last 24 hours, the crypto market suffered over $600 million in liquidations
- Bitcoin fell below $80k, and leads the liquidations with $232 million
- XRP, Solana, and meme coins like DOGE experienced declines as well
Despite what many expected, the crypto market isn’t doing all that great at the moment. The cryptocurrency market experienced over $600 million in liquidations during the last 24 or so hours. Bitcoin is the leader here with $232 million, followed by Ethereum’s $111 million liquidation.
This may or may not come as a surprise considering Donald Trump’s recent crypto summit was held only a few days ago, and it was believed that hype around that event would give a boost to cryptocurrencies, Bitcoin specifically.
Speaking of Bitcoin, the cryptocurrency fell below $80k, which was likely a reason for even more sell-offs.
Altcoins Also Hit Hard
Other cryptocurrencies didn’t fare any better. Ethereum endured big losses, subsequently dipping below $2k. XRP and Solana are also part of the affected group, as XRP’s liquidations were around $32 million, while Solana’s were slightly smaller at $28 million.
Meme coins didn’t escape the crash either, with the most well-known DOGE suffering a 12% decline.
Related: Altcoin Purge: Can Crypto ETFs Save Strong Projects from Market Crash?
Markus Thielen, the chief executive of market advisory company 10x Research, said that when Bitcoin price dropped below $80k, roughly 70% of the sales originated from those who had bought in the last quarter. These actions very likely indicate panic selling.
Potential Reasons for the Crash
It’s hard to say exactly why this has happened, but it’s possible there are multiple factors at play here. Regardless of how you see it, the crypto market is a financial market, and as such, is not immune to various influences that can tend to hit the finance sector.
Trump’s ongoing tariff war with Canada and Mexico could have had an effect as investors are fleeing risky assets, and crypto falls in that category. Then, new limitations were placed on cryptocurrency exchanges and stablecoins by the US government, which translates to more investor distrust, ultimately driving them to sell before potential restrictions take hold.
Related: Crypto Market Crash: Bitcoin Dumps as Trump’s “Strategic Reserve” Backfires
Market Resilience
Whatever the reason, a liquidation event of this scale can lead to a significant drop in market sentiment, but it’s also true that the crypto market has a history of similar events and has always bounced back, eventually. Hence, it’s natural to be cautious about potential moves.
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