A Stormy Day for Crypto Markets
The market has experienced a massive shakeout over the past 24 hours, with $1.18 billion liquidations. Bitcoin plummeted from an intraday high of $106,300 to approximately $99,700 by January 19, plummeting over 6% in a single day. This sharp drop wiped 406,000 traders off, liquidating long positions valued at $921 million and $260 million in short positions.
Ethereum and Altcoins Follow Suit
Ethereum also suffered the most among altcoins, with more than $207 million in longs getting liquidated. ETH fell 5% to an intraday low of $3,150. However, Ethereum remained within its range-bound trading channel formed for the month.
Other notable cryptocurrencies, such as XRP, Dogecoin, Cardano, Avalanche, and Stellar, were all in double-digit losses, indicating an extended broader market sell-off. The outlook was quite bleak for the altcoin market, as traders were losing heavily across the board.
A Familiar Pattern: January’s Market Rout
This recent plunge mirrors the market correction seen on January 7, where Bitcoin similarly dropped fast. That time, the price bottomed at just above $90,000 by January 13, with a week of pullback, according to the analysts, this plunge may point toward a repeating trend in the ongoing cycle.
Market Strategists Recommend Care
Popular crypto trader “Bluntz” also shared his two cents on the prevailing conditions, claiming, “Top signs everywhere.” He once again called for conservatism during the current stage of the market cycle, recommending traders take some of their profits away to cut their losses.
Trump’s Memecoin and Melania’s Token Dip
Adding to the volatility, Donald Trump’s memecoin surged as high as a $70 billion valuation before tanking over 40% within hours. The memecoin frenzy only briefly made it out of the gate before fizzling, which started with Melania Trump launching her namesake token that peaked at a $13 billion valuation, only to then fall sharply.
The Road Ahead
With Bitcoin slipping beneath the psychologically significant $100,000 level, and losses accumulating across the board in altcoins, market participants are preparing for further turbulence. Analysts mention that traders must be watchful as the volatility of the crypto market will remain well above average during the coming weeks.
