The post Bitcoin Price Crash Triggers $880M Crypto Liquidations: What Should Investors Do Now? appeared first on Coinpedia Fintech News
The cryptocurrency market is facing a major shake-up today, as Bitcoin (BTC) experiences a sharp 7% drop, falling to $97,905. What started as a typical market correction has quickly escalated into a larger sell-off, triggering massive liquidations across the space. As Bitcoin’s decline ripples through the market, nearly $900 million in leveraged positions have vanished.
But the questions are piling up—will Bitcoin hold its ground, or is this just the beginning of a deeper downturn? Read on to find out what’s at stake for the entire crypto market.
Liquidations Pile Up: $880 Million Wiped Out
According to Coinglass data, more than 316,000 traders were liquidated during this price drop, totaling $881 million in liquidations. Long positions were hit the hardest, making up about $820 million of the total, while short positions accounted for $60 million.
The largest single liquidation happened on the HTX exchange, where a massive $98.46 million position was wiped out.
Market Sentiment Shifts to Neutral
As the market continues to struggle, the Crypto Fear and Greed Index shows a shift in sentiment. The index now sits at 55, indicating a “Neutral” outlook. With increased caution in the market, more traders are betting against Bitcoin’s recovery by taking short positions.
Bitcoin Faces Critical Support Test: Will It Hold?
Bitcoin is currently testing its crucial support at $98,000, which it needs to hold to prevent further declines. If Bitcoin loses this level, it could trigger a deeper correction, erasing recent gains and causing more uncertainty in the market.
The pressure on Bitcoin is mounting as the Federal Open Market Committee (FOMC) meeting on January 29 approaches. On top of that, former BitMEX CEO arthur hayes 
arthur hayes
Arthur Hayes is a Bitcoin advocate and fintech pioneer, best known as the co-founder and former CEO of BitMEX, a leading cryptocurrency trading platform. Launched in 2014, BitMEX has traded trillions in Bitcoin and other digital assets. Hayes, a former Deutsche Bank and Citigroup derivatives trader, became interested in Bitcoin in 2013 after reading Satoshi Nakamoto's white papers. He stepped down as CEO of BitMEX in 2020 following regulatory challenges, including being the first crypto exchange charged under the Bank Secrecy Act. Hayes is recognized as the youngest African American crypto billionaire.
Details
Organization: BitMexLocation: Hong KongEducation: Bachelor of Science in Economics, Finance from the University of Pennsylvania and Bachelor of Science in Economics and finance from The Wharton SchoolSkills: Trading and Swaps
Experience:
Chief Investment Officer at Maelstrom from Dec 2022 - PresentCo-Founder at 100x Group from Oct 2020 - PresentCo-founder and CEO at 100x Group from Jul 2019- Oct 2020CEO at BitMEX from Jan 2014 - Oct 2020Delta One Trader (Associate) at Citi from Jun 2011 - May 2013Associate at Deutsche Bank from Jul 2008 - Jun 2011Synthetic Equity Trader at Deutsche Bank from Jun 2008 - Jun 2011
FAQ's
1. When was Bitmex founded?BitMEX was Launched in 2014.
2. What other roles does Arthur Hayes hold?After BitMEX, Hayes became the Chief Investment Officer at Maelstrom
EntrepreneurInvestorChief Executive OfficerTrader
has predicted a “mini financial crisis,” suggesting that Bitcoin could drop to $70,000 before a strong bull run takes it to $250,000.
Altcoins Also Hit Hard
It wasn’t just Bitcoin that took a hit—altcoins also saw significant losses. Ether (ETH) was the hardest hit, with over $110 million worth of long positions liquidated.
Other major cryptocurrencies like Solana (SOL), XRP, Dogecoin (DOGE), and Chainlink (LINK) saw their prices fall by double digits, contributing to the overall market downturn.
With every price swing, the cryptocurrency world proves just how unpredictable and exhilarating it can be.
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