Crypto Market Crash Wipes Out $685M in BTC, ETH, and Other Assets as Key Events Fail to Spark a Rally
Key Takeaways:
- The cryptocurrency market has entered a sharp downturn, leading to widespread liquidations.
- Major anticipated events, including Trump’s Bitcoin reserve announcement and the White House Crypto Summit, failed to boost market sentiment.
- Over $685 million in crypto holdings were liquidated, with Bitcoin and Ethereum experiencing the biggest losses.
Why is the Crypto Market Crashing?
The highly anticipated Bitcoin reserve adoption announcement by President Donald Trump and the White House Crypto Summit failed to generate the expected bullish momentum. Instead of a rally, the global crypto market witnessed a decline, bringing the total market cap down to $2.73 trillion—a 3.09% drop.
According to Matrixport, perpetual futures funding rates remain low, indicating weak retail investor enthusiasm. This contrasts sharply with the surging interest seen in April and December 2024. Despite high expectations, Bitcoin failed to rally following Trump’s executive order, and the crypto summit concluded without any market-moving developments.
$685 Million Liquidated as Crypto Sell-Off Deepens
The crypto market started the week on a bleak note, with $685 million in liquidations within the past 24 hours. Bitcoin’s drop below $80,000 triggered a massive wave of sell-offs, intensifying the market crash and causing a ripple effect across the industry.
Bitcoin led the liquidation surge, with a staggering $270.75 million in positions wiped out. Data from CryptoQuant shows that Bitcoin’s long liquidations spiked to 14,714 yesterday, marking a significant increase in forced sell-offs.
Ethereum (ETH) also suffered a major hit, with $123.55 million in positions liquidated. Meanwhile, XRP and Solana (SOL) saw substantial forced liquidations of $32.31 million and $28.79 million, respectively.
Whales Hit Hard by Market Correction
Large crypto holders, or whales, have not been spared from the crash. One whale with 65,675 ETH (valued at $135.8 million) on Maker is at risk of liquidation. Additionally, Trump’s financial entity, World Liberty Financial, reportedly suffered a $110 million loss, while his personal crypto portfolio declined by 13%.
Despite the widespread losses, some traders have capitalized on the downturn. Data from Lookonchain reveals that one whale has successfully shorted Bitcoin multiple times, accumulating an unrealized profit of over $7.5 million. The trader has set new short positions between $92,449 and $92,636, with exit targets placed between $70,475 and $74,192.
As the market correction continues, investors remain uncertain about whether a recovery is on the horizon or if further losses are imminent.
