Bitcoin (BTC) suffered a dramatic sell-off on Thursday, sliding more than 7% against the US dollar to hit an intraday low of $95,578 per coin. The entire cryptocurrency market followed suit, losing over 11% in total value as selling pressure intensified.
Market Collapse: Nearly $12,000 Erased in 48 Hours
Just two days ago, Bitcoin reached a new all-time high of $108,364. But within 48 hours, the price has dropped by almost $12,000. As of 3:20 PM Eastern Time, BTC was down 7.2% against the dollar. Ethereum (ETH) fared worse with an 11.3% decline, while Dogecoin (DOGE) plunged 20% during the afternoon session. Despite the selling frenzy, global trading volume surged 55% to an astonishing $302.6 billion, indicating both panic selling and strategic buying.
Derivatives Liquidations: $1.25 Billion Wiped Out, 370,000 Traders Hit
The crypto derivatives market came under severe pressure, with Coinglass reporting over $1.25 billion in total long and short position liquidations. Bitcoin longs accounted for more than $205 million of that total. The carnage extended to a shocking 370,433 crypto traders who lost their positions on Thursday afternoon. Dogecoin longs alone saw $58 million in liquidations, while meme coins like PNUT (-27.71%), NIERO (-25.06%), ACT (-24.67%), GOAT (-24%), and PENGU (-24%) suffered devastating double-digit drops. DeFi tokens such as DYDX (-18.42%) and APE (-18.17%) also experienced severe losses.
Altcoins and Meme Coins in Bloodbath
The widespread sell-off hit meme coins the hardest, with leading tokens declining more than 24% against the dollar. PNUT recorded a 27.71% drop, followed by NIERO at 25.06% and ACT at 24.67%. GOAT and PENGU both fell 24%. DYDX lost 18.42% and APE dropped 18.17%, highlighting the breadth of the downturn across all sectors.
Outlook: Volatility in a Bull Run
Thursday's crash underscores the severe challenges traders face as the 2024 bull run extends into 2025. With over $1 billion evaporating from derivatives markets and massive liquidations impacting tens of thousands, this downturn vividly illustrates the volatility accompanying bull markets. The surge in trading volume suggests a mix of panic selling and value buying. By 3:30 PM Eastern Time, Bitcoin had recovered slightly to trade at $96,541. Historically, during such corrections, Bitcoin and other digital currencies have lost over 20% from the peak before rebounding. All eyes remain glued to the screens, searching for signs of recovery or further decline.