The cryptocurrency market has faced a severe downturn, with Bitcoin (BTC) plunging below $92,000 and triggering widespread liquidations. In the past 24 hours alone, BTC has lost over $10,000, while the broader market has shed more than $400 billion in value.
Bitcoin’s Sharp Decline Below $92K
Market instability was largely driven by geopolitical concerns following new economic policies from the recently elected U.S. president. Over the weekend, Bitcoin fell below the crucial $100,000 threshold after former President Trump imposed tariffs on China, Canada, and Mexico—leading to swift retaliatory actions.
Although this initial drop was significant, it was just the beginning. After fluctuating between $97,000 and $98,000 on Sunday, BTC suffered another steep decline during Monday’s Asian trading session. This resulted in an intraday low of $91,500 on Bitstamp, marking its lowest point since the major sell-off on January 13.
Since last Friday, when Bitcoin was trading above $106,000, the cryptocurrency has lost approximately $15,000.
Altcoins Experience Even Greater Losses
While Bitcoin’s decline has been notable, altcoins have seen even more dramatic price drops. Apart from Solana (-8%), nearly every major cryptocurrency has suffered double-digit percentage losses:
• Ethereum (ETH): -20%
• XRP: -23%
• Binance Coin (BNB): -15%
• Dogecoin (DOGE): -24%
• Cardano (ADA): -25%
• Chainlink (LINK): -21%
• Avalanche (AVAX): -24%
• Stellar (XLM): -20%
The broader market downturn has wiped out more than $400 billion from the total cryptocurrency market capitalization.
Over $2.2 Billion in Liquidations
The sudden crash has triggered a wave of liquidations, with data from CoinGlass revealing that more than $2.2 billion worth of trading positions have been wiped out in just 24 hours. Over 700,000 traders have been affected by this sharp market movement.
The largest single liquidation took place on Binance, involving the ETH/BTC trading pair, which has now fallen to a multi-year low. That position alone was worth over $25 million.
What Lies Ahead?
With market conditions remaining highly volatile, investors are keeping a close watch for any signs of stabilization. The cryptocurrency space is no stranger to sharp price swings, but the scale of these losses underscores the risks of leverage trading and the impact of global economic events.
For now, the market remains in turmoil, and whether this is a temporary dip or the start of a prolonged downturn remains to be seen.
