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Highlights
- The crypto market crash sees over $150 billion in losses within last 24 hours.
- If BTC price loses key support at $93,700 is can further fall to $75,600.
- Bitcoin ETFs experienced significant outflows, totaling $516 million on Monday, with Fidelity and BlackRock leading the sell-off.
- Citadel's pivot to crypto liquidity provision turned out to be a "sell the news" event.
Crypto market crash continues to extend further as the Bitcoin price takes a dip all the way to $91,000 levels with overall market liquidations soaring all the way to $914 million. Altcoins could be facing an even greater crash amid a liquidity crisis-like situation.
Bitcoin Leads Crypto Market Crash
Over the last 24 hours, the broader crypto market has lost more than $150 billion with the total market cap slipping under $3 trillion. Bitcoin losses have extended further by 4% slipping all the way to $91,000 while falling under key support levels.
As per the Coinglass data, the 24-hour Bitcoins liquidations have topped $274 million of which $258 million is in long liquidations. Furthermore, this selling pressure comes with a 150% surge in daily trading volumes to more than $51 billion.
Further BTC Price Correction Coming?
Amid the steep fall in the Bitcoin price, market analysts are flashing warning signs hinting at the possibility of further correction and a crypto market crash. For the first time since September 2024, Bitcoin demand has dropped into negative territory as per Julio Moreno, the head of research at CryptoQuant.
Moreno highlighted the challenges facing Bitcoin in the current market conditions, noting that such negative demand growth makes it difficult for prices to rally. He further warned that the risks of a further market correction are increasing.
Also, as per crypto analyst Ali Martinez, if BTC bulls fail to hold the $93,700 support on a daily closing basis, it risks falling further to the next major support at $75,600. The warning comes as market participants closely monitor Bitcoin’s price movements amid heightened volatility and macroeconomic uncertainty. As of press time, BTC price is trading 3.6% down at $91,910 levels.
Bitcoin ETF Sell-Offs On The Rise
Additionally, last week, Bitcoin investments witnessed $571 million worth of outflows while short-Bitcoin inflows surged to $2.8 million. Outflows from spot Bitcoin ETFs have also surged netting $516 million on Monday, with Fidelity’s FBTC seeing $247 million in outflows while BlackRock’s IBIT clocked $159 million worth of outflows.
Arthur Hayes has issued a stark warning about potential turbulence in the Bitcoin market. Hayes explained that many $IBIT holders, particularly hedge funds, have leveraged a strategy of going long on ETFs while shorting CME futures to secure yields exceeding short-term U.S. Treasury rates. However, if the basis narrows as BTC prices decline, these funds may sell $IBIT holdings and repurchase CME futures to unwind their positions.
With the basis now nearing U.S. Treasury yields, Hayes suggests these funds, already in profit, are likely to act during U.S. trading hours to realize gains.
Altcoins See A Steeper Fall
Amid major liquidity challenges and a sharp drop in the S&P 500 sell-off in the altcoin space has accelerated in this crypto market crash. Ethereum price is down today by 8% slipping under $2,500 today, with daily trading volume surging to $31.6 billion, and 24-hour liquidations surging to $195 million.
Furthermore, altcoins like Solana have faced even steeper falls in relation to Bitcoin. Solana has suffered the biggest hit falling more than 22% since last Friday.
The Bybit hack on February 21 has cast a shadow over market sentiment, shaking investor confidence. Arkham Intelligence has labeled the incident the “largest financial heist in history,” underscoring the magnitude of the breach and its impact on the cryptocurrency landscape. However, the crypto exchange Bybit managed to acquire all of Ethereum within just 48 hours of the incident.
In a surprising turn of events, Citadel Securities made a significant shift in its crypto strategy just hours before a notable market response. According to Bloomberg, the $65 billion financial giant is exploring becoming a liquidity provider for Bitcoin and other cryptocurrencies. However, the market interpreted the news as a “sell the news” moment, prompting a cautious reaction among traders.
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