Crypto Market Crash: Reasons Why Bitcoin, ETH, XRP, DOGE, SOL, SUI Are Falling

The crypto market saw massive liquidation during early US hours on Monday plunging the global crypto market cap by more than 2% from $3.34 trillion to a low of $3.21 trillion. Investors lost over $130 billion in wealth with Bitcoin (BTC) and Ethereum price approaching key support levels. Meanwhile, other altcoins including XRP, BNB, Solana (SOL), Cardano (ADA), and SUI also fell 3-8%. The crypto market crash resulted in panic selloff.

Dogecoin (DOGE) and Shiba Inu (SHIB) prices losing frenzy to tumble over 5%. The market is now consolidating before Donald Trump’s inauguration next week.

Crypto Market Crash: Over $400 Million in Top Crypto Liquidated

Coinglass data indicates over $400 million in crypto liquidations, with over 170K traders liquidated in the last 24 hours. The largest single liquidation order of BTCUSDT valued at $8.21 million happened on crypto exchange Binance.

Crypto Market Liquidations. Source: Coinglass

Nearly $330 million long and $70 million short positions were liquidated, with BTC, ETH, DOGE, SOL, XRP, and SUI witnessing leading the liquidations. In the last 1 hour, $55 million in cryptocurrencies were liquidated causing the crypto market to crash.

GM!#BTC Liquidation Heatmap(48 Hour)

100x long got liquidated

Liquidity Grab .https://t.co/xtuMc5F2lw pic.twitter.com/hRWvM4kBeb

— CoinGlass (@coinglass_com) January 13, 2025

Macro Factors Create Headwinds

Traders have turned more cautious after stronger-than-expected jobs data indicated a robust United States economy. Concerns over inflationary tariffs under President-elect Donald Trump have also fueled a cautionary outlook. It has given more room for the Federal Reserve to delay further rate cuts this year.

Wall Street giants such as Goldman Sachs, Bank of America and Barclays confirmed a delay in Fed rate cuts this year. Meanwhile, federal funds futures show that traders no longer fully expect rate cuts before the end of the year.

The US dollar index (DXY) has surpassed 110 for the first time since 2022. Also, the 10-year Treasury yield increased to 4.8%, the highest level since October 2023. This has caused a massive dropdown in Bitcoin price.

Macro headwinds for the market are not over yet as the US CPI inflation, PPI, and unemployment claims are due this week. This may cause crypto market crash to worsen.

Whales and Institutions Selling Bitcoin and Ethereum

Bitcoin price tumbled below the key support level of $92,000, while ETH price risks falling below $3000. This happened as whales and institutions started liquidating their holdings, first signaled by outflow in spot Bitcoin ETFs.

CoinGape reported that Bitcoin network activity has dropped to its lowest level since November 2024. Moreover, the 7-day moving average of the Short-Term Holders’ SOPR (Spent Output Profit Ratio) has fallen below 1, signaling that short-term holders are selling their assets at a loss. BTC risks crashing to $80K if it loses this crucial support level.

Source: CryptoQuant

Tron founder Justin Sun deposited a total of $320.4 million worth of Ethereum to crypto exchange HTX in the last 13 hours. Ethereum whales are dumping ETH at a loss.

XRP price prediction by CoinGape Markets shows major trouble for the crypto asset. XRP broke out above the symmetrical triangle pattern, but the outlook remains uncertain.

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