Crisis Averted? 444K Traders Swoon as Bull Run Kicks the Bucket! đŸ˜±

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The grand charade that is the financial markets, including the wildly capricious crypto assets, is displaying an enthusiasm for consecutive losses, as fears of a US recession rise to a theatrical crescendo.

Alas, in the most recent 24 hours, the global crypto market cap plummeted with all the subtlety of a lead balloon, descending by 11% to a paltry $2.37 trillion, as per the ever-reliable sages at CoinMarketCap. One might reminisce fondly to early November 2024, when the digital asset market cap dared to dip below the exalted $2.4 trillion mark, coincidentally just before the US presidential election’s curtain fell.

Yet, just as a comically timed plot twist, the crypto trading volume decided to triple, reaching a dizzying $130 billion. Traders appear to be scurrying about the market—not unlike rats abandoning a sinking ship—to either cash in on the market-wide panic or salvage their losses before they’re completely swept away.

CMC’s data has flung open the doors to the “extreme fear” zone, where optimism goes to die.

A cataclysmic bear storm has swept through, loosing a staggering $1.37 billion in liquidations in the past 24 hours, according to CoinGlass, with the majority of positions wiped clean comprising $1.2 billion in longs, and a meager $150 million in shorts. Truly, a festival of financial folly.

Bitcoin
Bitcoin
BTC
$76 479
24h volatility
24h volatility:
8.0%
Market cap
Market cap:
$1.52 T
Vol. 24h
Vol. 24h:
$63.94 B
alone noted losses amounting to $467 million – where $401 million belongs to longs and a, frankly, paltry $66 million are for shorts. Truly a tragic tale.

In total, more than 450,000 traders have been ceremoniously liquidated. The piĂšce de rĂ©sistance was a singular liquidation order on Bitfinex, reaching the absurd height of $16.3 million in Bitcoin. 🎭

Bears and Recession

The crypto market appears intent on embodying a bear market before orchestrating another bull run. Why, you ask? Well, other than an abundance of short-term hype, the lack of a significant bullish catalyst is akin to a play without a compelling plot.

Our dear CryptoQuant CEO, Ki Young Ju, proclaimed in an X post that the “Bitcoin bull cycle is over.” Truly riveting commentary!

#Bitcoin bull cycle is over — here’s why.

There exists a concept in on-chain data known as the Realized Cap. It unfolds thus: when BTC enters a blockchain wallet, it’s a “buy,” and when it departs, it’s deemed a “sell.” By employing this delightful metric, one can estimate an average cost


— Ki Young Ju (@ki_young_ju) April 5, 2025

Our insightful friend asserted that Bitcoin’s price has been trapped in a Sisyphean struggle against extreme selling pressure; even the slightest selloff may plunge the price lower, thanks to the woeful lack of demand.

Young Ju speculates the selling pressure could glimpse relief soon, yet the bear market may persist for a least a half-year before another sensational market-wide rally takes center stage.

The specter of a US recession looms ominously, providing a splendidly dreadful backdrop for our bear market. A report from Reuters shared that Goldman Sachs sees a 45% chance of an economic decline in the US over the coming 12 months—a rather disconcerting fortune told by the stars.

This grim prediction is a result of the economic uncertainty fostered by President Donald Trump’s reciprocal tariffs and the retaliatory dance performed by US trading partners. Quite the waltz!

Meanwhile, the Volatility Index (VIX), courtesy of the Chicago Board Options Exchange, soared to heights not seen in five years, peaking at 45.3. We last witnessed such disarray in April 2020.

The venerable stocks like the S&P 500 and the Dow Jones Industrial Average have taken a tumble, declining by 5.97% and 5.5%, respectively—an altogether dreary sight.

Yet, amidst this economic tempest, BitMEX co-founder Arthur Hayes musingly suggests that US trade tariffs could provide a glimmer of hope for cryptocurrencies, pointing out that a weakened dollar may ultimately prop Bitcoin up from the ashes. One can only hope for a comedic twist to this tragicomedy!

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2025-04-07 14:15