Amanze Chinonye
The global cryptocurrency market lost nearly $170 billion in capitalization on Thursday, in what market trackers describe as one of the steepest one-day declines of the year.
Data from CoinMarketCap and CoinDesk show that Bitcoin fell below $109,000, Ethereum slipped to around $3,800, and Solana briefly traded under $200, erasing gains made earlier in the month.
According to liquidation data compiled by CoinGlass and cited by CoinDesk, more than $1.1 billion in leveraged long positions were wiped out across major exchanges within 24 hours, with Ethereum traders suffering the heaviest losses at over $400 million. Bitcoin long liquidations topped $265 million, underscoring the market’s vulnerability to rapid deleveraging.
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Analysts point to a combination of macroeconomic headwinds including a stronger U.S. dollar, persistent inflation concerns, and rising U.S. Treasury yields as key drivers of the sell-off. A looming $22 billion bitcoin options expiry added further pressure as traders rushed to rebalance positions ahead of the deadline.
Despite the steep downturn, institutional investors showed pockets of resilience. Several spot Bitcoin exchange-traded funds recorded modest inflows on the day, although the specific figure of $241 million cited by some social media posts remains unconfirmed by major ETF issuers.
Market strategists warn that volatility could remain elevated in the days ahead as investors digest upcoming U.S. economic data and central bank signals.
“This sell-off reflects a classic risk-off move, but the structural presence of ETFs and institutional players could help dampen the longer-term impact,” said one analyst quoted by Barron’s.
With Bitcoin holding just above the key $109,000 level in early Friday trading and Ethereum struggling to reclaim the $4,000 mark, traders are bracing for further swings as the market searches for a near-term bottom.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
