Bitcoin and Ether Crash as Crypto Market Suffers $1.19B in Liquidations

Cryptocurrency prices tumbled early Monday amid the global stock market sell-off as investors fled risk assets. The price of bitcoin swept to its lowest price since February while ethereum turned negative on the year.

Cryptocurrency prices fell sharply on Monday morning as a sell-off in global stock markets deepened amid worsening risk sentiment. Bitcoin dropped to its lowest price since mid-February while ether turned negative on the year.

Crypto prices fell further as Friday's sell-off continued through the weekend with losses worsening by late Sunday. Over the past 24 hours, crypto-tracked futures recorded over $1.19 billion in liquidations, Coinglass data showed.

Bitcoin futures recorded $421.1 million in liquidated trades to lead losses at the time of writing, followed by ether at $375 million. Futures tracking solana, dogecoin and ripple recorded a combined $95.8 million in liquidations.

Over 312,700 traders were liquidated during that period, according to Coinglass. The largest single liquidated order was a BTC/USD trade worth $27 million on the Singapore-based Huobi exchange.

Gracy Chen, CEO of Seychelles-based exchange Bitget, wrote in a note that the market is in a "panic" mode as mainstream crypto assets have fallen sharply.

"The global economy is alerted with geopolitical tensions and the U.S. economy is facing recession pressure," Chen wrote, noting the U.S. stock market fell for three consecutive trading days. Meanwhile, the Japanese stock market has been "in a circuit breaker" for two consecutive trading days. VXX, which tracks Wall Street's fear gauge, the Cboe Volatility Index, soared 27% in a single day according to Chen, which indicates the macro financial market is under great pressure for a correction, causing wider market selling.

Institutions have also played a role in the sell-off, Chen said. Berkshire Hathaway sold off Apple (AAPL) and Bank of America (BAC) stock in the last 12 trading days to bolster its cash horde, which affects overall sentiment. On the crypto front, market maker Jump Crypto sold ether after its analysts bet on a decline following spot ETF approvals.

"Before the market forms a true bullish drive, it needs to experience a sharp decline to reduce the long positions of the contracts in order to reduce the selling pressure for future rises," Chen said, based on historical trends. "At present, the core key to affecting the market trend is the sentiment index. If VXX starts to fall, it means that panic sentiment has eased."

Bitcoin fell nearly 17.5% over the last 24 hours to trade around $50,300, CoinDesk Indices data shows, marking its lowest price since mid-February. BTC dropped as low as $49,314 early Monday.

Bitcoin has pared its gains on the year to 22% after hitting a record high of $73,798 on March 14.

Ether traded near $2,240 Monday morning, tanking about 23% over the last 24 hours. Ether is now down about 3% in 2024 as the move erased its rally on the year. ETH hit a 52-week high of $4,092 on March 14. But the No. 2 crypto was, and still is, well below its November 2021 peak above $4,800.

Coinbase (COIN) unraveled nearly 18% Monday morning. Shares retreated Friday following its Q2 report late Thursday.

Bitcoin miners Iris Energy (IREN) and CleanSpark (CLSK) plummeted more than 22% early Monday. Core Scientific (CORZ), Marathon Digital (MARA) and Hut 8 (HUT) saw losses range from 17% to 21% in early trade.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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