Crypto Liquidations Surge Amid Market Volatility
In a dramatic turn for the cryptocurrency market, over $1.7 billion worth of liquidations occurred in the past 24 hours, highlighting heightened market volatility. The overall market capitalization plummeted by 6% during this period, with Bitcoin (BTC) and Ethereum (ETH) leading the downturn in asset prices.
Bitcoin and Ethereum Face Major Losses
Bitcoin recorded a staggering $768.69 million in liquidations, of which $745.3 million were long positions. Similarly, Ethereum followed close behind with $417.43 million in total liquidations and $390.5 million in long positions. The crypto market’s steep decline was fueled by factors such as geopolitical tensions and aggressive deleveraging, creating ripples across the entire digital asset space.
Exchange Data: The Biggest Liquidation Hotspots
According to data, Hyperliquid emerged as the top exchange for liquidation volumes, with $567.2 million in long settlements. Bybit and Binance followed with $329 million and $152.3 million, respectively. These liquidations were triggered by margin accounts hitting their thresholds for covering losses, leading to forced closures. This cascading effect often accelerates bearish momentum, further destabilizing the market.
Cascading Effects Across the Market
The ripple effect of liquidations was profound. Bitcoin and Ethereum prices both hit two-month lows, with Bitcoin dropping to $19,815 and Ethereum to $2,687 at one point before a slight recovery. Solana (SOL) saw the largest drop among major cryptocurrencies, registering a 7.7% decline over the past day.
Beyond Crypto: Global Markets Also Hit
This market crash was not confined to cryptocurrencies, as traditional assets like gold, silver, and equities also faced a turbulent day. A significant 6% dip in gold’s market capitalization erased nearly $3 trillion, while the Nasdaq lost $750 billion in value. The broad sell-off highlights a period of extreme uncertainty across financial markets.
Fear Index at an All-Time Low
The Crypto Fear & Greed Index plummeted to 16 on January 30, signaling extreme levels of fear among market participants. This is the lowest reading the index has registered this year, reflecting the growing panic. On-chain data also shows significant sell-offs from crypto whales, further amplifying market fears.
Looking Ahead: Will the Market Rebound?
As February nears, traders and investors are left questioning whether the crypto market has reached its bottom or if continued volatility lies ahead. Factors such as geopolitical tensions and wavering investor sentiment will likely play key roles in shaping short-term market direction.
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