Bitcoin Price Crash Triggers $880M Crypto Liquidations: What Should Investors Do Now?
Mustafa Mulla27 Jan 20253 min read
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 at 100x Arthur Hayes is an investor and entrepreneur from the United States. He is the previous CEO of BitMEX, one of the top cryptocurrency derivatives exchanges globally. In 2014, he co-established BitMEX, facilitating cryptocurrency trading through leveraged Bitcoin futures. He is often seen sharing his insights and views on the Bitcoin market. He also backs crypto-related projects and helps them gain momentum with his advice on the market. Quick Facts Full name Arthur Hayes Birth 1985, Detroit, Michigan Nationality American Education Economics & Finance from the Wharton School of Business Marital status Married Net worth Estimated $500-700 million Hayes previously worked at Deutsche Bank and Citigroup. While working at these fintech firms, Arthur concentrated on establishing crypto derivatives as a common standard. In 2021, he encountered legal problems concerning BitMEX's compliance. Nevertheless, he settled the matter through legal means. Arthur Hayes - Timeline and Events 2016 – Launched the XBTUSD perpetual swap, revolutionizing crypto trading. 2018 – BitMEX became one of the largest Bitcoin trading platforms. 2020 – Faced legal scrutiny but remained a key industry figure. 2021 – Settled U.S. legal issues and stepped down as BitMEX CEO. 2022 – Focused on crypto investments and writing industry insights. 2023 – Advocated for Bitcoin adoption and decentralized finance (DeFi). 2024 – Continued shaping the digital asset space through investment and research. Arthur has collaborated with various blockchain experts and engaged with innovative startups for the growth of crypto and Web3 innovations. He continues to be an influential voice in the crypto space and shares his perspectives on Bitcoin, DeFi, and blockchain regulations. Useful Links to Connect With Arthur Hayes Platform Link X (formerly Twitter) https://twitter.com/CryptoHayes LinkedIn https://www.linkedin.com/in/arthur-hayes BitMEX Website https://www.bitmex.com Personal Blog https://cryptohayes.substack.com 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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