Bitcoin, Ethereum, XRP crash leads to losses for 278901 crypto traders in leverage market
Bitcoin, Ethereum, and XRP have experienced a significant crash, causing 278,901 crypto traders to be burned in the leverage market. Bitcoin, in particular, dropped from $104,000 to $99.1K after the Fed Chair’s speech on Thursday, a decrease of almost 5% within a 24-hour period. Meanwhile, altcoins like XRP, Cardano’s ADA, and Litecoin’s LTC fared even worse, initially plummeting 10% before recovering from their lows.
Data from Coinglass revealed that the total number of traders liquidated for the day amounted to 278,901, with liquidations reaching $809 million in total. The largest single liquidation order occurred on Binance – ETHUSDT, valued at $7.1 million. The crash was attributed to a less dovish monetary policy in 2025, which poses challenges to the crypto market.
The focus has shifted to the Fed’s future policy decisions, including the policy statement, revised economic forecasts, and a forthcoming press conference with Chairman Jerome Powell. A sustained rise in the US dollar’s value also presents a risk to Bitcoin, as it is connected to a reduction in the world’s money supply, which can be detrimental to cryptocurrency assets.
Despite recent bullish trends in the cryptocurrency market following Donald Trump’s victory in the presidential election, there are concerns about its sustainability. Arthur Hayes, co-founder of BitMEX, anticipates a major market decline on January 20, 2026, when Trump takes office as the 47th president. This anticipation is based on the belief that Trump’s policy changes and regulations may not materialize as quickly as expected, leading to a potential sell-off in the market.
There is a cautious outlook on the future of the crypto market despite the positive impact of Trump’s promises to support cryptocurrency interests. It is essential for investors to remain informed and vigilant in such a volatile market. Stay updated with breaking news and market intelligence for the latest updates.
