The cryptocurrency market experienced a sharp decline on Monday, erasing over $110bn in value as Bitcoin (BTC) and altcoins dropped to their lowest levels in weeks. This sudden downturn followed a period of stability and was driven by growing economic concerns and unsettling developments within the crypto asset sector.
Leveraged positions lost $882 million as a result of the sell-off, making it one of the biggest liquidations in recent weeks. Over 284,000 crypto traders were forced to exit their trades, with those holding long positions suffering the most severe losses.
Bitcoin’s value plummeted from $96,954 to a monthly low of $90,924, leading to long liquidations amounting to $256 million before staging a partial recovery. Ether also had a steep decline, plunging to $2461—a more than 10% decline—wiping out $176 million in long positions.
The biggest percentage decline occurred in Solana, which fell 13% to $136, resulting in long liquidations of $83 million and short-position liquidations of $8 million.
Cardano’s CEO, Charles Hoskinson, voiced his frustration over investor reactions, suggesting that many had lost sight of the bigger picture. He compared the market’s behavior to that of a child throwing a tantrum, criticizing the panic-driven sell-off.
The market’s volatility comes as President Donald Trump reinstates 25% tariffs on imports from Canada and Mexico. Earlier optimism had stemmed from a temporary suspension of these trade barriers, but their return has reignited concerns about economic stability.
Investor confidence has also been shaken by the scandal involving insider trading of Solana-based meme coins. The controversy led to substantial fund withdrawals from Solana, heightening anxiety across the broader market.
At the same time, Ether and Bitcoin ETFs have seen heavy outflows, further pressuring prices. Data from SoSoValue indicates that Ether ETFs saw $85.3 million in withdrawals over the last two weeks, while BTC ETFs saw the largest exit since its introduction of $1.14 billion.
Moreover, the market is still grappling with the impact of a recent $1.5 billion cyberattack on the Bybit exchange, making selling pressure worse as traders scramble to secure their assets.
The crypto greed and fear index, which has fallen to 27, solidly in the “fear” range, indicates that worry has taken hold. A month earlier, the measure stood at 61, indicating a strong degree of optimism. A reading below 41 implies that market activity is dominated by widespread anxiety, whereas a reading over 41 often denotes positive or neutral sentiment.
Major crypto exchanges like Coinbase Global Inc. (NASDAQ: COIN) are likely to watch the trading activity on their platforms to see if the market sentiment changes soon from the current sell-off to a more bullish stance.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
North Korean hackers have reportedly managed to create two fake companies in the U.S., slipping…
Tensions are rising between the European Commission and the European Central Bank (ECB) over whether…
Bitcoin’s price currently sits around $83,794, slipping by 2.47% in the last 24 hours. Even…
China is grappling with what to do about a growing stockpile of digital currencies confiscated…
Since Donald Trump returned to the White House, his administration has taken a friendly approach…
President Donald Trump recently signed a measure overturning a controversial IRS rule that would have…