Bitcoin’s Sudden Drop Triggers Nearly $900 Million Crypto Market Liquidation
The cryptocurrency market is facing a major shake-up today, as Bitcoin (BTC) experiences a sharp 7% drop, falling to $97,905. What started as a typical market correction has quickly escalated into a larger sell-off, triggering massive liquidations across the space. As Bitcoin’s decline ripples through the market, nearly $900 million in leveraged positions have vanished.But the questions are piling up—will Bitcoin hold its ground, or is this just the beginning of a deeper downturn? Read on to find out what’s at stake for the entire crypto market.Liquidations Pile Up: $880 Million Wiped OutAccording to Coinglass data, more than 316,000 traders were liquidated during this price drop, totaling $881 million in liquidations. Long positions were hit the hardest, making up about $820 million of the total, while short positions accounted for $60 million.The largest single liquidation happened on the HTX exchange, where a massive $98.46 million position was wiped out.Market Sentiment Shifts to NeutralAs the market continues to struggle, the Crypto Fear and Greed Index shows a shift in sentiment. The index now sits at 55, indicating a “Neutral” outlook. With increased caution in the market, more traders are betting against Bitcoin’s recovery by taking short positions.Bitcoin Faces Critical Support Test: Will It Hold?Bitcoin is currently testing its crucial support at $98,000, which it needs to hold to prevent further declines. If Bitcoin loses this level, it could trigger a deeper correction, erasing recent gains and causing more uncertainty in the market. The pressure on Bitcoin is mounting as the Federal Open Market Committee (FOMC) meeting on January 29 approaches. On top of that, former BitMEX CEO Arthur Hayes has predicted a “mini financial crisis,” suggesting that Bitcoin could drop to $70,000 before a strong bull run takes it to $250,000.Reversing the order of my tryptic essay series. The Ugly will be published tomorrow morning. I am calling for a $70k to $75k correction in $BTC, a mini financial crisis, and a resumption of money printing that will send us to $250k by the end of the year. pic.twitter.com/XxT4VFyzu4— Arthur Hayes (@CryptoHayes) January 27, 2025Altcoins Also Hit HardIt wasn’t just Bitcoin that took a hit—altcoins also saw significant losses. Ether (ETH) was the hardest hit, with over $110 million worth of long positions liquidated.Other major cryptocurrencies like Solana (SOL), XRP, Dogecoin (DOGE), and Chainlink (LINK) saw their prices fall by double digits, contributing to the overall market downturn.With every price swing, the cryptocurrency world proves just how unpredictable and exhilarating it can be. We'd Love to Hear Your Thoughts on This Article!Was this writing helpful?