Bitcoin is falling! Over 420000 people have experienced warehouse explosions

This wave of selling erupted in the early morning of Sunday (1st), with the core commodity Bitcoin taking the lead in diving mode. The price continued to decline, falling below the $76000 mark at one point and hitting a low of $75500, reaching a low level since April 2025. Although there was a slight rebound afterwards, easing some of the decline, the decline is difficult to change. As of press time, Bitcoin has still fallen 6.01% within 24 hours, reaching $78782.26, a significant drop from its recent high, and the market value has evaporated significantly. ​

The sharp drop in prices triggered a chain reaction, and the tragic explosion of the cryptocurrency market occurred simultaneously, causing heavy losses to investors. According to Coinglass data, in the past 24 hours, the total amount of cryptocurrency contract liquidation on the entire network reached 2.559 billion US dollars, with over 420000 people experiencing liquidation. Among them, the amount of multiple liquidation reached 2.4 billion US dollars, and the amount of empty liquidation reached 150 million US dollars, showing a clear "kill more" stampede effect. The largest single liquidation occurred in Hyperliquid ETH, with a value of up to 223 million US dollars, highlighting the extreme volatility of the market. ​

1、 Overall decline: Ethereum leads the decline, mainstream tokens collectively under pressure

The sharp decline of Bitcoin is not an isolated case, and the entire cryptocurrency market is showing a "general decline" trend, with mainstream and popular tokens killing off simultaneously, leaving no exception. Among them, the trend of Ethereum is particularly weak, with a decline far exceeding that of Bitcoin. At one point, it fell to $2202.4 during trading, and the largest decline in 24 hours once exceeded 12%. As of press time, it still fell 9.68% to $2437.01, and its market value has significantly shrunk, showing a clear downward trend following the trend. ​

Other mainstream and popular tokens also suffered heavy losses, with declines generally exceeding 8%, further spreading market panic. SOL (Solana Coin) and Dogecoin (DOGE) both experienced a decline of over 10%, with Dogecoin experiencing severe short-term fluctuations and becoming one of the most prominent popular tokens with the most significant decline; SUI and BNB (Binance) fell more than 9%, and ADA also fell more than 8%. The entire cryptocurrency market was in mourning, and the previously accumulated gains were quickly swallowed up, causing a heavy blow to investor confidence. ​

2、 Core incentive: Double impact of Trump nomination and hawkish expectations of the Federal Reserve

Market analysts point out that the outbreak of the large-scale sell-off in the cryptocurrency market is not accidental, and the core is the combined impact of dual factors - doubts about tightening liquidity and strong expectations from the outside world that the Federal Reserve (Fed) will maintain a hawkish policy stance in the future. Trump's personnel nomination became the direct trigger for the market sell-off. ​

The key turning point occurred on January 30th, when US President Trump announced the nomination of former Federal Reserve Board member Kevin Walsh as the next chairman of the Federal Reserve, instantly changing market expectations for the Fed's monetary policy. The market generally believes that Kevin Walsh has always adhered to a hawkish monetary policy stance. After taking office, he may continue or even strengthen hawkish policies, alleviate market concerns about the independence of the Federal Reserve, and promote the strengthening of the US dollar, which directly suppresses the performance of risky assets such as cryptocurrencies. ​

At the same time, concerns about tight liquidity continue to ferment, further exacerbating market panic. With the hawkish expectations of the Federal Reserve heating up, the market is concerned that loose monetary policy will gradually withdraw, and funds will flow out of the high-risk cryptocurrency market towards more stable assets, leading to liquidity pressure in the cryptocurrency market. Marcus Tilen, founder of 10x Research in Singapore, stated that the market's expectation of Walsh's hawkish stance has made cryptocurrencies no longer seen as a "means to resist currency depreciation," but rather as "speculative surplus assets." Once easing recedes, speculative prices will quickly dissipate. ​

In addition, the "safe haven nature" of Bitcoin has been questioned by the market, further amplifying the decline. Previously, the precious metal market also experienced a sharp decline, with traditional safe haven assets such as spot silver and gold plummeting. In theory, funds should have flowed into Bitcoin, known as "digital gold". However, the reality is that funds did not flow into the cryptocurrency market, but instead accelerated their withdrawal, leading to market skepticism about its safe haven nature and triggering panic selling, forming a vicious cycle.