Ethereum Plunges 18% as $2.3B Crypto Liquidations Rock Market

Ethereum Crashes By 18% Amid $2.3 Billion Crypto Liquidations

Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has experienced a significant crash, losing 18% of its value in a single day. This decline comes amidst a broader market downturn, with the total crypto market capitalization dropping by over $200 billion. The recent sell-off has been attributed to a combination of factors, including increased regulatory scrutiny, market uncertainty, and a potential global trade war sparked by US President Donald Trump's tariff announcements.

Bybit CEO Ben Zhou has estimated that crypto liquidations following new US tariffs could surpass $10 billion, sparking concern among investors and analysts. Zhou emphasized that the actual liquidation figures are significantly higher than reported, largely due to data limitations imposed by major exchanges, including Bybit. In Zhou’s words, “During the 2022 FTX collapse, recorded liquidations were 4-6 times worse than publicized,” illustrating a trend of underreporting in the volatile crypto market.

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has also been affected by the recent market downturn. BTC has lost over 5% of its value in the past 24 hours, with its price dropping below $95,000. Other major cryptocurrencies, such as Ethereum (ETH) and Ripple (XRP), have also experienced significant losses, with ETH plunging below $2,500 and XRP falling below $0.50.

Analysts and industry experts have warned that the current market conditions could lead to a more severe correction, with some predicting that BTC prices could plummet to as low as $70,000. However, others remain optimistic, noting that the crypto market has historically bounced back from severe downturns. Bitcoin's current valuation remains significantly higher than six months ago, suggesting that while short-term fluctuations may be alarming, long-term prospects for recovery persist.

Investors are encouraged to remain vigilant, as the current downtrend could present valuable purchasing opportunities for long-term holders. With the crypto landscape evolving continuously, understanding these dynamics is critical for making informed decisions. As the crypto market contends with the aftershocks of US tariffs and the ongoing