Crypto Market Sees $1 Billion in Liquidations as Bitcoin Dips Below $100K

The cryptocurrency market experienced a massive wave of liquidations over the past 24 hours, as Bitcoin's price plunged back below the $100,000 mark, sparking turmoil across the space. Liquidations totaled over $1 billion, affecting nearly 406,000 traders, with both long and short positions taking significant hits.

$1 Billion in Liquidations

According to data from CoinGlass, over $1.18 billion in crypto positions were liquidated in the past 24 hours. This was split between approximately $921 million in long liquidations and $260 million in short liquidations. The vast majority of liquidations occurred in Ethereum (ETH) and Bitcoin (BTC) positions, which led the market selloff.

Ether liquidations were particularly prominent, with over $207.5 million worth of long positions being liquidated in just a single day. Bitcoin followed closely behind, with $202 million in long liquidations.

Bitcoin’s Sharp Drop

Bitcoin, which had recently come close to its all-time high, experienced a sharp drop on January 19, losing more than 6% of its value in a matter of hours. The price fell from an intraday high of $106,300 to a low of $99,700. This drop mirrored a similar pullback that occurred earlier in January, when Bitcoin fell by a comparable amount, bottoming out just above $90,000 by January 13.

Crypto trader “Bluntz” posted on X (formerly Twitter) that the market was showing “top signs everywhere” and advised traders to consider taking profits. “I think we’re at the stage in the cycle where it would be prudent to take some chips off the table,” they added, highlighting the growing uncertainty in the market.

Altcoins Hit Hard

Altcoins were not spared from the carnage, with several top cryptocurrencies experiencing double-digit declines. Ethereum (ETH) fell more than 5%, reaching an intraday low of $3,150. Despite this, Ether remained within its month-long range and has not mirrored Bitcoin’s sharp drop over the past week.

Other notable altcoins also suffered substantial losses, with XRP, Dogecoin (DOGE), Cardano (ADA), Avalanche (AVAX), Sui (SUI), and Stellar (XLM) all seeing steep declines during the market downturn.

Donald Trump’s Memecoin Fizzles

Amid the market-wide liquidation, the hype surrounding Donald Trump’s Solana-based memecoin also seemed to deflate. After surging to an all-time high valuation of over $70 billion on January 19, the TRUMP memecoin experienced a dramatic 40% drop within hours on January 20. The decline came after Melania Trump, the incoming First Lady, launched her own memecoin, MELANIA, which peaked at a valuation of over $13 billion shortly after its launch.

The volatility surrounding both the TRUMP and MELANIA tokens highlights the speculative nature of the current memecoin trend, with many investors rushing in and out of these assets amid fast-moving price action.

Market Sentiment and Outlook

The crypto market’s sharp swings and the wave of liquidations reflect the ongoing volatility in the space. With Bitcoin struggling to maintain its recent gains, altcoins facing steep declines, and the memecoin hype beginning to fade, the coming days may bring more uncertainty.

For now, traders are on high alert, as market conditions appear to be shifting rapidly. As Bitcoin and other major cryptocurrencies test their price levels, the sentiment in the broader market remains cautious, with many anticipating further turbulence in the short term.

As liquidations continue to pile up and key digital assets face pressure, it remains to be seen how the market will stabilize or if further declines are imminent.