Crypto Market Faces $1.3 Billion in Liquidations Amid Recession Fears

Major financial markets, including cryptocurrencies, are experiencing losses amid rising fears of a US recession.

The global crypto market cap fell by 11% in 24 hours, now at $2.37 trillion, the lowest since early November 2024.
Total crypto trading volume tripled to $130 billion, indicating market activity driven by panic or loss mitigation.
Over $1.37 billion in liquidations occurred, primarily in long positions with Bitcoin alone accounting for $467 million.
More than 450,000 traders were liquidated, with the largest single order worth $16.3 million on Bitfinex.

Bears and Recession

The market shows signs of a potential bear phase before a possible bull run, lacking bullish catalysts.
CryptoQuant CEO Ki Young Ju stated the “Bitcoin bull cycle is over,” citing extreme selling pressure and insufficient demand.
Goldman Sachs predicts a 45% chance of a US economic decline within the next year due to policy uncertainty.
The Volatility Index (VIX) reached a five-year high of 45.3, while major stocks like the S&P 500 and Dow Jones fell by approximately 6%.
Arthur Hayes, co-founder of BitMEX, suggested that US trade tariffs might eventually benefit cryptocurrencies by weakening the dollar.