The Crypto Market's Tumultuous Descent: A $90 Billion Hourly Loss and the Impact of Forced Liquidations
The cryptocurrency market is experiencing a dramatic downturn, with a staggering $90 billion erased from its value in just one hour. This rapid decline has triggered over $1.3 billion in forced liquidations, wiping out leveraged positions across major exchanges. The situation has intensified as traders face the consequences of a market that is now worth less than $3.5 trillion, its lowest point since July.
The primary catalyst for this crisis is the Federal Reserve's hawkish stance, which has reignited fears across global risk markets. Despite a recent rate cut, Fed Chair Jerome Powell's remarks about inflation have strengthened the U.S. dollar, causing a ripple effect on speculative assets, including cryptocurrencies. The U.S. Dollar Index (DXY) has surged to over 100, its highest since August, triggering technical selling and causing Bitcoin to lose critical support zones.
Bitcoin's Plunge and the Impact on Altcoins
Bitcoin (BTC) has plummeted below $105,000, extending a sharp correction that began last week. This decline has been mirrored by major altcoins such as Ethereum (ETH), Solana (SOL), and XRP, which have all suffered double-digit losses. The Crypto Fear and Greed Index has fallen to 21, indicating extreme fear in the market. Over 327,000 traders have been wiped out in the past day, a figure that is reminiscent of the October 11 flash crash.
Altcoins, in particular, have borne the brunt of the market's downturn. With thin liquidity and cascading sell orders, Solana (SOL) has dropped below $160, Ethereum has slipped 5% to $3,500, and XRP and Cardano (ADA) have tumbled over 5.5%. The total crypto market cap has shrunk below $3.5 trillion, its lowest level since July.
Market Analysts' Perspective
Market analysts view this correction as a "healthy reset" after months of aggressive rallies. However, they caution that if Bitcoin breaks below the $100,000 psychological support, the broader market could face an additional 5–8% downside. As the crypto storm intensifies, traders are bracing for heightened volatility, and the market's future remains uncertain.
