Bitcoin and Ethereum, two of the biggest cryptocurrencies, crashed overnight. Bitcoin fell by 17% in one day to $49,089. Ethereum had an even bigger drop, falling 24% to below $2,125. This sudden fall has shaken the global crypto market, leading to $1.04 billion in liquidations over the past 24 hours.
In the last 24 hours, the cryptocurrency market faced huge losses. About $901.67 million in long positions were liquidated. This sell-off began on Sunday and has caused major losses for big digital assets like Bitcoin and Ethereum. The total market cap of all cryptocurrencies has now dropped below $2 trillion, the lowest since February.
Bitcoin and Ethereum’s Big Fall
Bitcoin’s value has fallen sharply, losing more than 17% in a single day and 27% over the past week. It hit a low of $49,089, a price not seen since February. Ethereum’s drop was even worse, falling 24% in one day and 35% in a week. Its price fell below $2,125, wiping out its gains for the year.
Several factors caused this sudden market downturn. One major reason was the large-scale liquidation of Ethereum. The big drop in ETH prices forced several large holders, known as ‘whales,’ to sell off their assets to cover their positions. Other reasons include disappointing economic data and rising geopolitical tensions, which made the sell-offs even worse.
Other cryptocurrencies were also hit hard. Altcoins like XRP, BNB, and Solana saw big declines. XRP fell over 19%, trading around $0.4498. BNB dropped more than 22%, reaching $413. Solana, another popular cryptocurrency, dipped below $115, losing over 21% in value.
Market Pressure from Jump Crypto’s Suspected Sales
The market pressure increased because of rumors about Jump Crypto, a part of Jump Trading, selling large amounts of Ethereum. Reports say that Jump Crypto moved large amounts of USDC, USDT, and Ethereum between its cold wallets and various exchanges, including Coinbase, Gate.io, and Binance. This move raised concerns about potential sell-offs because the firm holds about $243 million in digital assets.
Jump Crypto’s role in the market has drawn a lot of attention, especially because of its past legal issues related to the collapse of TerraUSD and the Terra ecosystem in May 2022.
The SEC is investigating Jump Crypto for its role in allegedly manipulating TerraUSD’s price, which led to $1.3 billion in profits for the company and its CEO, Kanav Kariya. This investigation is part of a larger SEC case against Terraform Labs and its founder, Do Kwon, for a multi-billion dollar crypto asset securities scam.
The recent crash has left the cryptocurrency market in chaos. With major cryptocurrencies like Bitcoin and Ethereum seeing huge drops, investors are worried. The pressure from large-scale liquidations and rumors of major sell-offs has only added to the uncertainty. As the market continues to react to these developments, the future is unclear.
What’s Next?
As the crypto market deals with these turbulent times, investors are watching closely for any signs of recovery. The recent crash has highlighted the risks and volatility of digital assets. For the latest updates and expert analysis, stay connected with TurkishNY Radio. Our coverage ensures you stay informed about all the key events and market movements.
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