In the past 24 hours, the cryptocurrency market experienced a staggering wave of liquidations, totaling $1.2 billion, as the price of Bitcoin continued to decline. According to data from CoinGlass, Bitcoin alone accounted for liquidations amounting to $458.24 million, with more than $334 million of that originating from long positions. Ethereum, the second-largest cryptocurrency, also faced significant liquidations, totaling $278 million.
The week’s downturn saw Bitcoin plunging to $103,856 early Friday morning, marking its lowest point since July and a notable decline of 13% over the past week. This decline contributed to a broader market sell-off, with the total cryptocurrency market capitalization dropping to $3.67 trillion, down 5.5% overall. The market’s current anxiety is reflected in CoinMarketCap’s fear and greed index, which now stands at a level of 28.
Bitcoin exchange-traded funds (ETFs) were also severely impacted, experiencing outflows of $536 million on Thursday alone. The Ark 21 Shares Bitcoin ETF recorded the largest outflow, losing $275.15 million. Since the beginning of the week, Bitcoin ETFs have seen a total of $864.5 million in outflows, underscoring the turbulent market conditions.
Maja Vujinovic, CEO and cofounder of digital assets at FG Nexus, commented on the situation, suggesting that the slump in Bitcoin appears to be part of a broader risk-off reaction. She explained the current dynamics by pointing to credit jitters and trade tensions, which have driven investors towards gold at record levels, while forced unwinding of leveraged crypto long positions has added to the volatility. Vujinovic is optimistic that once the liquidations stabilize and market policies become clearer, the same investors who are currently seeking safety may return to Bitcoin seeking value once again.
