Why is Crypto market Down Today? $1.4B Ethereum Hack The Reason?

Looking at the current market sentiment and ongoing liquidations, it appears that the crypto market is crashing today. However, this market crash comes after several positive developments in recent days. The price drop across the crypto landscape seems to be shifting overall sentiment toward the bearish side, resulting in half a billion dollars worth of crypto liquidations in the past 24 hours.

$544 Million Worth Crypto Liquidation

Data from an on-chain analytics firm, Coinglass reports that during the market downturn, over $544 million worth of open positions were wiped out. These substantial liquidations have potentially created fear among traders and investors, pushing the market toward a bearish trend.

Reason Behind Crypto Market Down

The potential reasons behind this market downturn and millions worth of crypto liquidations include a hack of the world’s largest crypto exchange, Bybit, which recently lost $1.4 billion worth of Ethereum (ETH), and ongoing economic tensions between the United States and countries like China, Canada, and others.

Besides this, another major factor influencing the bearish market sentiment and downturn is the sharp decline in Bitcoin (BTC) price due to heavy selling pressure and Exchange-Traded Fund (ETF) outflows from asset managers.

Expert Comments on Current Market Sentiment

Observing the bearish market sentiment and continuous price decline, Tara McAulay, former co-founder of Alameda Research and CEO of Pharos, appears to be raising concerns about a further decline and has hinted that the market could experience a crash similar to 2020.

With this bearish market sentiment, major assets like Bitcoin (BTC), Ethereum (ETH), and XRP have witnessed price drops of over 0.45%, 1.5%, and 3.50%, respectively, in the past 24 hours. Additionally, this bearish price action is further influencing overall market sentiment, contributing to the market downturn.