Crypto Catastrophe: Ethereum’s Price Plummets, Liquidations Soar! 😱💸

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Well, well, well! It appears that the crypto market has decided to take a rather dramatic plunge, dropping more than 10% in the past 24 hours. As of Monday, February 3, 2025, it finds itself languishing at a rather dismal $3.2 trillion. Ethereum, that cheeky little rascal, has taken the lead in this unfortunate escapade, with a price tag of
Ethereum Price$2,556 and a volatility that could make a rollercoaster look like a gentle stroll in the park at
Ethereum Volatility17.8%. The market cap? A staggering $307.91 billion, which is a number so large it could make even Scrooge McDuck raise an eyebrow.

Meanwhile, Bitcoin, that granddaddy of cryptocurrencies, has slipped below the $96K mark, making a beeline for the support level around $91K. It seems to be having a bit of an identity crisis, trading at a rather pedestrian
Bitcoin Price$95,279 with a volatility of just
Bitcoin Volatility4.5%. The market cap for our dear Bitcoin stands at a whopping $1.89 trillion, and it has managed to wrangle in a trading volume of $99.91 billion. Quite the busy bee, isn’t it?

Now, if you thought that was the end of the story, think again! In a fit of market madness, over $2.2 billion has been liquidated from the leveraged crypto market. Ethereum, bless its heart, led the charge with a net liquidation of about $609 million, with long traders contributing a hefty $479 million to the cause. Talk about a financial bloodbath! 🩸

Other notable casualties in this crypto catastrophe include Bitcoin, with around $410 million, and Ripple Labs’ XRP, which managed to lose $117 million. Dogecoin, that lovable mutt of the crypto world, took a hit of around $87 million, while Solana, the new kid on the block, lost a modest $85 million. It’s a veritable who’s who of financial misfortune!

In fact, these recent liquidations are the largest we’ve seen since Bitcoin first graced our screens, outdoing even the infamous Black Thursday of Covid-19, the Tera Luna debacle, and the FTX fiasco. If this were a soap opera, it would be the season finale! 🎭

Top Reasons Why Crypto Market Dumped Today

So, what on earth has caused this crypto calamity? Well, after a period of overheated leveraged markets, thanks in no small part to the pro-crypto antics of President Donald Trump, it seems we’ve hit a cooling-off period. The sell-the-news scenario has left long traders in a bit of a pickle, resulting in a long-squeeze that would make even the most seasoned investor weep.

Moreover, the crypto market has been following the global stock indexes like a lost puppy, signaling potential further selloffs ahead. The tariff trade wars, led by none other than Trump himself, have created a delightful cocktail of mid-term market uncertainty. Cheers! 🥂

Meanwhile, whale investors are looking about as confident as a cat in a room full of rocking chairs, with Bitcoin and Ethereum supplies on centralized exchanges increasing by around 5,218 and 103,816 respectively in the past 24 hours. Not a good sign, I daresay!

What’s Next?

Despite the current chaos, the crypto market has been riding a macro bull rally, fueled by institutional investors and nation-states eager to cash in on digital assets. Most crypto analysts, led by the ever-optimistic Ki Young Ju from CryptoQuant, believe that this bullish sentiment will continue. Meanwhile, Benjamin Cowen, the crypto oracle, suggests that the market tends to regain its bullish spirit after the Fed wraps up its Quantitative Tightening (QT). Fingers crossed! 🤞

However, should Bitcoin continue its downward spiral below $90K, we might find ourselves trapped in a macro bearish sentiment. On the flip side, if Bitcoin can manage a consistent close above $108K, we could be in for a thrilling ride on the macro bull cycle. Buckle up, folks! 🎢

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2025-02-03 12:01