FameEX Hot Topics | Crypto Liquidations Soar to $1B in 24 Hours as Bitcoin Takes a Nosedive

Crypto market liquidations surged to over $1 billion in the last 24 hours, as Bitcoin briefly dipped below $100,000 following a near-record high. More than 400,000 traders were affected by the sharp price movements. According to data from CoinGlass, the total liquidations amounted to $1.18 billion, with nearly 406,000 traders liquidated. This included $921 million in long liquidations and $260 million in short liquidations.

Bitcoin, which had reached a peak of $106,300, lost over 6% in value, dropping to around $99,700 on January 19. This rapid decline mirrored a similar market crash that occurred on January 7, when Bitcoin experienced a similar fall in a matter of hours. That initial pullback continued for a week, eventually bottoming out at just above $90,000 by January 13.

The sudden drop in Bitcoin’s price triggered concern among traders, with crypto trader “Bluntz” noting that there were “top signs everywhere.” On social media platform X, they advised that it was likely the right moment to “take some chips off the table,” indicating a cautious sentiment toward the market’s short-term prospects.

The market's volatility was also fueled by the hype surrounding Donald Trump's memecoin, which had seen a meteoric rise over the weekend. The token briefly surged to a fully diluted valuation of over $70 billion on January 19. However, the excitement quickly faded as the token plummeted by more than 40% on January 20, leading to sharp losses for investors who had bought in during its peak.

Adding to the chaos, Melania Trump, the wife of the incoming U.S. president, launched her own memecoin, the MELANIA token, on January 19. The token saw an initial surge, reaching a fully diluted valuation of $13 billion, only to face a significant drop soon after. Despite its hype, the token’s website clarified that it was intended for “support” and “engagement” rather than investment, with a portion of the tokens allocated to the project’s team, treasury, and liquidity.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.