Crypto Market Sees $1 Billion Liquidations Amid Bitcoin Price Plunge

Crypto Market Sell-Off Intensifies

The cryptocurrency market is under significant pressure, with nearly $1 billion in liquidations across crypto assets in the past 24 hours, according to Coinglass data. Bitcoin (BTC) has dropped to $83,540, marking a 10% decline over the same period. The broader stock market, including the Nasdaq 100, has also seen a similar 10% decline, nearing bear market territory.

Peter Brandt Warns on Volatility Risks

Renowned trader Peter Brandt commented on the current market conditions, noting that the extreme volatility of the past week presented opportunities for both significant gains and losses. Brandt expressed his dislike for trading in such volatile conditions, emphasizing that "lose a lot of money" is a binary outcome. He stressed that trading is a marathon, not a sprint, highlighting the importance of risk management and long-term planning.

Market Sell-Off Continues

The crypto market experienced a brutal sell-off early Tuesday, extending Monday's losses. Nearly all top 100 cryptocurrencies, excluding stablecoins, were in the red, with several posting double-digit losses. Over $978 billion in crypto derivatives were liquidated, with bullish bets accounting for $833.71 million and shorts liquidation reaching $144.46 million.

Crypto Reserve Announcement Sparks Brief Rally

Sunday's announcement of a crypto strategic reserve, including ADA, XRP, and SOL alongside Bitcoin (BTC) and Ethereum (ETH), triggered a market frenzy. ADA surged over 60%, XRP climbed 33%, and SOL rose 22% immediately following the news. However, the rally was short-lived, as profit-taking and a risk-off sentiment in broader equity markets led to a sharp reversal.

Potential Market Bottom Ahead

Amid the ongoing sell-off, Tom Lee, Head of Research at Fundstrat, suggests the broader market may be nearing a bottom, possibly as soon as this week. This optimism comes as traders weigh the potential for recovery amid heightened market uncertainty.

The cryptocurrency market remains highly volatile, with traders balancing opportunities and risks in a challenging environment.