Crypto Crash: Liquidations Top $2.5 Billion as Bitcoin, Ethereum and XRP Prices Plummet

Core Insights - The cryptocurrency market is experiencing a significant decline, with major assets like Bitcoin, Ethereum, and XRP reaching multi-month lows, leading to increased liquidations [1][2][3] Price Movements - Bitcoin has dropped 8% in the last day to $77,195, marking a nine-month low and a weekly decline of over 13%, with a total decrease of nearly 39% since its peak above $126,000 in October [1] - Ethereum has fallen 13% to $2,362, down 20% over the past week, and has lost 52% of its value since peaking near $5,000 in August [2] - XRP is down 10% to $1.58, while other altcoins like Solana and Dogecoin have also seen significant declines of 14% and 13%, respectively [2] Liquidations and Market Sentiment - Futures traders faced substantial losses, with $2.53 billion in liquidations, predominantly from long positions, indicating a bearish market sentiment [3] - Ethereum accounted for nearly half of the liquidations at $1.14 billion, followed by Bitcoin at $765 million [3] - Market predictions show a growing bearish sentiment for Bitcoin, with a 65% chance of falling to $69,000, an increase of 22% in bearish odds over the last day [4] Market Drivers - The recent market downturn is attributed to volatility driven by fears of a U.S. government shutdown and concerns over a potential bubble in AI investments [5] - Approximately $1.5 billion in assets exited U.S. spot Bitcoin ETFs in the past week, indicating a shift away from risk-on assets, with Ethereum ETFs losing $327 million [5] Precious Metals Reaction - Precious metals like gold and silver saw a surge to all-time highs earlier in the week, reflecting a risk-off attitude, although they experienced sharp declines on Friday [6]