The current bearish sentiment across the crypto market has left many bullish leveraged traders with massive losses. According to on-chain liquidation tracker, Coinglass, fueled by the sharp price drop of the leading crypto, bitcoin (BTC), over 350,000 traders have lost $1.34 billion within the past 24 hours.
For the first time since August 2024, BTC dropped below $89,000 on Tuesday, as fear leads the crypto market. Moved by the trend, other high-cap coins, including Ethereum (ETH), Solana (SOL), and Ripple (XRP), witnessed a huge drop in their prices.
$1.3 Billion Wiped
The most significant single liquidation order happened on the Binance exchange for a BTC/USDT long position valued at $20.80M. Notably, traders who predicted that BTC would move upward were the most disappointed, as they lost over $205 million.
Trailing the loss were ETH traders, who lost $72.9 million, as the crypto plunged by 10% below the $2,400 mark. Meanwhile, SOL and XRP took off over $34 million from many traders, as they both witnessed 17% and 15% price drops, respectively.
Other altcoins moved with the downtrend, leading the crypto market capitalization to plunge by almost 7%. At press time, the market’s valuation was sitting at $2.89 trillion.
Crypto ETFs Record Outflows
Driven by the bearish move, bitcoin exchange-traded fund (ETF) holders also secured their bags. According to ETF tracker Farside, within the past five business days, the funds have recorded over $1 billion in outflows as investors sold off their holdings in fear.
Meanwhile, Ether ETFs did not escape the effects of a bearish market. The funds recorded over $79 million in outflows on Monday, as investors pulled out of BlackRock’s ETHA and Bitwise ETHW, resulting in the funds’ most gloomy business day of the month.
Is a Price Recovery Imminent?
Notably, before the price drop, American author and bitcoin enthusiast Robert Kiyosaki had predicted that the crypto market would witness a crash that would take BTC to $60,000. However, he also noted that it will be followed by a massive price rebound to a new all-time high around the $250,000 mark. This also aligns with the Bernstein analysts’ prediction for bitcoin to reach at least $180,00 in an inevitable 2025 bull run.
Meanwhile, many publicly traded firms and governments have declared their belief in crypto and adopted a strategic bitcoin reserve. Thus, the crypto community looks forward to a change in market sentiments when these institutions storm the market with massive purchases.
