The Bitcoin price crash has sent shockwaves through the broader crypto market, erasing gains made earlier this month. Bitcoin (BTCUSD) dropped nearly 3% to around $83,000 after hitting a high of $86,000 earlier in the week. The sell-off dragged down major altcoins, with Ethereum (ETH) falling more than 5% to approximately $2,560, XRP dropping about 5% to $1.42, and Solana (SOL) crashing over 3% to $116.69.
The sudden decline appears to be fueled by excessive leverage in the market. Data from CoinGlass shows that over 1.25 million traders were liquidated in the past 24 hours, totaling $717.58 million in liquidations. Bitcoin alone accounted for $185.83 million in liquidations, with $174.95 million coming from long positions. The largest single liquidation was an ETHUSDC position worth $26.64 million on Binance.
The fallout extended to crypto-related stocks, with MicroStrategy (MSTR) shares tumbling 6.67%, while Coinbase Global (COIN) and Circle Internet Group (CRCL) both declined around 4%. Robinhood Markets (HOOD) fell 2.73%, and other affected stocks included Hut 8 (HUT), CleanSpark (CLSK), Riot Platforms (RIOT), Sharplink (SBET), Bitmine Immersion (BMNR), and Bullish (BLSH).
The market downturn is attributed not only to leverage but also to broader macroeconomic pressures. The Federal Reserve minutes hinted at the possibility of another rate hike this year, while the 10-year Treasury yield remained around 5.27% and the 30-year yield reached 5.70%, its highest level since 2002. Today's crash has disrupted Bitcoin's recent bullish momentum and reignited fears of another October flash crash.