430,000 people forced to liquidate! The crypto market evaporates 100 billion, five factors combine to form a 'crash package'
At the beginning of 2026, the crypto market directly opens with a 'green buff', BTC breaks below $75,500 creating a new low in nearly ten months, down 30% from last October's peak; ETH plummets from $3,000 to $2,250, and altcoins become a 'disaster zone', with many accounts going to zero.
In a single day, 430,000 traders were liquidated, and $2.6 billion in funds 'evaporated', with the whole market losing $111 billion in market value in one day, a selling frenzy comparable to a 'clearance sale', with social media filled with regretful statements about 'leverage harming people'.
This wave of crash is the result of five factors combining to form a 'crash package': the dovish expectations of the Federal Reserve falling short, the hardliner Waller about to take office, high interest rates + strict regulation driving away capital; the aftereffects of the flash crash on 1011 are still lingering, market liquidity as thin as paper, and controversies over exchange technical failures adding to the panic; the escalation of the US-Iran situation, the 'safe-haven' narrative of crypto flipping, with funds fleeing to the US dollar and US Treasuries; institutions continuously withdrawing from Bitcoin ETFs, rising compliance costs causing institutions to exit; and the collapse of precious metals triggering cross-market chain reactions, with panic sentiment spreading completely.
The five major factors form a 'downward-liquidation-downward' death spiral, combined with the year-end cash-out wave—regardless of institutions or retail investors, everyone wants to cash out for a safer New Year, and tightening liquidity further fuels the decline.
In fact, there is no need to panic excessively, as the ups and downs of the market are normal; this wave is more about the combined effect of macro factors and year-end liquidity. The key now is to avoid high leverage, not to blindly catch the bottom, and to protect principal is more important than anything else. Have a good New Year, and wait for the sentiment to warm up and funds to flow back in the new year, the market will naturally welcome new opportunities; as long as the green mountains remain, there's no fear of not having firewood to burn.
Binance market data shows that BTC has broken through 77,000 USDT, with the current price at 77,207.65625 USDT, and the 24-hour decline has narrowed to 2.30%. Like, follow, comment to receive 4500 eth🧧
Binance market data shows that BTC has broken through 77,000 USDT, with the current price at 77,207.65625 USDT, and the 24-hour decline has narrowed to 2.30%. Like, follow, comment to receive 4500 eth🧧
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