The crypto market has witnessed a sharp price drop as the world’s leading crypto, bitcoin (BTC), followed by Ethereum (ETH), Solana (SOL), and others, dropped massively. Anticipating the long-predicted Q1 2025 market surge, many traders who have held long leverage positions over time have been swept off the market, resulting in more than $2 million loss incurred.
Following the price drop, the entire crypto market capitalization plummeted 8%, now around $3.1 trillion.
Notably, the market crash was fueled by U.S. President Trump’s new steep tariffs on imports from Mexico, Canada, and China.
$2.26 Million Gone
According to the on-chain liquidations tracker, Coinglass, over half a million futures traders were liquidated about $2.26 billion within the last 24 hours. The most significant single liquidation was from an ETHBTC pair on the Binance exchange, worth $25.64 million.
ETH traders are leading the liquidation spree. As the crypto tumbled more than 20% below the $2,100 mark, bullish traders reaped over $610 million. Following the downtrend, BTC slumped to $91,200, leading to a loss of over $415 million.
Ripple (XRP), the world’s fourth-largest crypto by market capitalization, was not left out. It witnessed a massive over 20% price drop, reaping $122 million from traders. Collectively, Dogecoin (DOGE) and SOL traders lost a whopping $175 million.
On-chain Borrowers Bleed
The massive drop’s effects were not limited to leverage traders; on-chain liquidity suppliers and borrowers also recorded a historic loss. According to Parsec, within the past 24 hours, on-chain lending liquidation volume surpassed the $310 million mark, reaching its highest point since August 2024.
Remarkably, the famous American crypto enthusiast and author Robert Kiyosaki predicted a sharp market drop this month and noted that it provides a better opportunity for intending investors to ape into the crypto market and acquire more tokens in preparation for a price rebound to hit a new all-time high before the year runs out.
Meanwhile, BTC has recovered above the $95,000 mark at press time, raising the hopes of a possible uptrend soon.
