Traders Lost Nearly $500 Million Due to Crypto Market Crash. What Happened

RBK-cryptoОпубліковано о 2026-01-08Востаннє оновлено о 2026-01-08

Анотація

On January 8th, the cryptocurrency market experienced a sharp decline, with Bitcoin (BTC) momentarily dropping below $90,000, erasing all its gains from the beginning of the week. Ethereum (ETH) also fell, dropping over 5% to below $3,100. Although prices slightly recovered later, the total market capitalization fell by approximately 4% to $3.1 trillion. This volatility led to the liquidation of over $460 million in leveraged trades, affecting more than 127,000 traders. The vast majority of these losses, $415 million, were from long positions betting on price increases, primarily in Bitcoin and Ethereum. Market sentiment, as measured by the Fear and Greed Index, remained in the "fear" zone at 28 out of 100, indicating a tendency among investors toward panic selling. Furthermore, U.S. spot Bitcoin ETFs recorded a significant net capital outflow of nearly $486 million on January 7th, marking the second consecutive session of outflows. Ethereum ETFs also saw outflows, ending a three-session streak of positive inflows with a $98 million net outflow. Despite the recent drop, Bitcoin's price remains up more than 3% since the start of the year.

"RBC-Crypto" does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.

On the morning of January 8, the price of Bitcoin (BTC) momentarily dropped below $90,000, wiping out all gains from the beginning of the week. From the peak of the previous day, quotes lost more than 3.5%. Ethereum (ETH) lost more than 5% from its January 7 peak—its price momentarily fell below $3,100.

By 11:20 Moscow time, Bitcoin quotes had slightly recovered and were around $90,500. ETH is trading at the level of $3,150. The total capitalization of the crypto market lost approximately 4% over the past 24 hours, standing at $3.1 trillion.

Since the beginning of the year, the price of BTC still shows growth of more than 3%, and the local peak was reached on January 5 at the mark of $94,800.

Amid volatility in the crypto market over the past 24 hours, crypto exchanges liquidated leveraged trades of more than 127,000 traders for a total of about $460 million, according to Coinglass data. The majority of the losses—$415 million—were incurred by those betting on the rise of cryptocurrencies (long positions, longs). Most of the losses occurred in the Bitcoin and Ethereum markets.

The Crypto Fear and Greed Index has been in the "fear" zone since mid-December—according to data as of January 8, it is holding at 28 points out of 100. The movement of the indicator suggests that market participants are leaning towards panic selling of cryptocurrencies.

At the end of the trading session on January 7, spot Bitcoin exchange-traded funds (ETFs) in the US recorded a net capital outflow of nearly $486 million, according to information from SoSoValue. This is the second consecutive trading session with a net capital outflow from Bitcoin funds. Ethereum-based ETFs broke a series of three consecutive trading sessions with a positive capital inflow indicator—on January 7, the aggregate outflow amounted to $98 million.

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QWhat was the total amount of money liquidated from traders in the crypto market crash, and what was the primary cause of these liquidations?

AApproximately $460 million was liquidated from over 127,000 traders. The primary cause was a sharp market drop, with Bitcoin falling below $90k and Ethereum below $3.1k, which triggered the liquidation of leveraged positions.

QHow did the prices of Bitcoin (BTC) and Ethereum (ETH) change during the market drop on January 8th?

ABitcoin's price momentarily dropped below $90,000, losing over 3.5% from its peak the previous day. Ethereum's price fell below $3,100, losing more than 5% from its peak on January 7th.

QWhat does the 'Fear and Greed Index' value of 28 indicate about the sentiment in the cryptocurrency market?

AA value of 28 indicates that the market is in a state of 'Fear,' suggesting that market participants are leaning towards panic selling of cryptocurrencies.

QWhat was the net capital flow for US spot Bitcoin ETFs on January 7th, and how did it compare to the previous session?

AUS spot Bitcoin ETFs recorded a net capital outflow of nearly $486 million on January 7th. This was the second consecutive trading session with a net capital outflow for Bitcoin funds.

QDespite the recent drop, what is Bitcoin's overall performance since the beginning of the year mentioned in the article?

ASince the beginning of the year, Bitcoin's price is still showing growth of more than 3%, with a local peak reached on January 5th at $94,800.

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