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.

What will happen to the regulation of the cryptocurrency market in Russia in 2026

Bitcoin turned 17 years old

Bitcoin as "digital gold": what an investor should know

Пов'язані питання

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.

Пов'язані матеріали

From Survival to Accelerated Growth: The Journey of Zcash's Three-Year Rise as Told by the Founder of ZODL

**From Survival to Accelerated Growth: Zcash Founder Details the 3-Year Rise** Three years ago, Zcash (ZEC) was a struggling pioneer in privacy technology, with a price near $30, low shielded supply (11%), and a community mired in governance disputes. Today, ZEC trades around $600, with over 31% of its supply (~$3B) in user-controlled shielded pools. This transformation resulted from breaking key constraints. First, **governance shackles were removed**. The old model guaranteed funding to two entities (ECC and ZF) regardless of performance, creating a monopoly. In 2024, ECC rejected further direct funding, forcing a change. The NU6 upgrade ended direct funding, allocating 8% to community grants and 12% to a protocol-controlled treasury for retroactive rewards, expiring in 2028 unless renewed by overwhelming consensus. The entities also relinquished their trademark-based veto power, freeing community governance. Second, the **product focus shifted** from pure cryptography to user growth. Previously, engineering excelled at privacy tech but failed to attract users. In early 2024, the team (later ZODL) pivoted to building products users wanted, like the Zodl wallet (default privacy, hardware support, cross-asset swaps). This drove shielded supply to grow over 400% in ZEC terms, with 86.5% of recent transactions being shielded, representing real user adoption. Third, the **narrative evolved** from the limiting "privacy coin" label to "unstoppable private money." This clarified Zcash's value proposition: a Bitcoin-like monetary policy with verifiable private payments via advanced cryptography. This structural narrative—protocol (Zcash), asset (ZEC), gateway (Zodl)—enabled broader exchange listings, institutional interest, and ETF filings. Finally, **organizational constraints were broken**. In early 2026, the ECC team left its non-profit structure after disputes over control, forming Zcash Open Development Lab (ZODL). ZODL raised $25M from top VCs (Paradigm, a16z, etc.), gaining the capital and agility of a startup to scale consumer products. Current metrics show strong momentum: social discussion volume for ZEC surged 15,245% in a year, with 81% positive sentiment. The focus is now on enhancing user experience (Zodl wallet), scalability (Tachyon project targeting Visa-level throughput with 25-second blocks), and post-quantum security (quantum-recoverable wallets coming soon). Zcash is positioned to become faster, more usable, scalable, and quantum-resistant.

marsbit10 хв тому

From Survival to Accelerated Growth: The Journey of Zcash's Three-Year Rise as Told by the Founder of ZODL

marsbit10 хв тому

Five Counterparty Risk Architectures: A Settlement-Layer Methodology for Classifying TradFi Models in Crypto Exchanges

**Summary:** This companion piece reframes the five TradFi-on-crypto exchange architectures, previously classified by "architectural fingerprint," through the lens of counterparty risk. The core question is: whose balance sheet bears the loss first in a stress scenario, and has it historically done so? Each of the five models corresponds to a distinct risk holder with its own documented failure modes. * **Model 1 (Stablecoin-Settled CEX Perpetuals):** Risk is held by the stablecoin issuer (e.g., reserve composition, bank connectivity) and the CEX's own book. History includes Tether's banking disconnections (2017) and reserve misrepresentations (CFTC 2021 Order). * **Model 2 (CFD Brokers):** Risk resides on the broker's balance sheet (B-book model). Regulatory differences (e.g., ESMA's mandatory negative balance protection vs. Mauritius FSC's lack thereof) define loss allocation rules, as seen in the 2015 SNB event (Alpari UK insolvency). * **Model 3 (Off-Chain Custody & Transfer Agent Chain):** Risk lies with the off-chain custodian/platform. User asset recovery depends on Terms of Use and corporate structure, exemplified by the Celsius bankruptcy ruling (2023) where Earn Account assets were deemed property of the estate. * **Model 4 (DEX Perpetual Protocols):** No single balance sheet bears risk. Loss absorption relies on a protocol's insurance fund and Auto-Deleveraging (ADL) mechanism, as demonstrated in the GMX V1 (2022) and dYdX v3 YFI (2023) incidents. * **Model 5 (Regulated CCP - DCM-DCO-FCM):** The most institutionalized model concentrates risk in the Central Counterparty (CCP). However, history shows CCPs can employ non-standard tools under extreme stress, such as mass trade cancellation (LME Nickel, 2022) or enabling negative price settlements (CME WTI, 2020). The report argues that regulatory choices and counterparty risk structures are co-extensive, not in an upstream-downstream relationship. It concludes with five separate observation checklists (not predictions) for monitoring the structural vulnerabilities of each risk model.

marsbit27 хв тому

Five Counterparty Risk Architectures: A Settlement-Layer Methodology for Classifying TradFi Models in Crypto Exchanges

marsbit27 хв тому

White House Crypto Advisor Fires Back At Bank CEOs In Stablecoin Rewards Clash

As a key crypto market structure bill nears a markup, the White House's top crypto advisor has criticized bank CEOs for reigniting a debate over stablecoin rewards. This follows a letter from American Bankers Association CEO Rob Nichols urging bank executives to pressure lawmakers to revise the CLARITY Act, claiming its current language inadequately prevents crypto firms from offering "interest-like rewards" on payment stablecoins, which could risk bank deposits and financial stability. The bill prohibits interest-equivalent payments but allows rewards for specific activities like staking. Patrick Witt, a White House digital assets advisor, rebuked the banking CEOs for refusing to attend White House mediation meetings on this issue, which has delayed the bill for months. While Senate sources suggest the banking lobby's push is weak and the committee is focused on other bill aspects, the debate could resurface when the legislation reaches the full Senate.

bitcoinist1 год тому

White House Crypto Advisor Fires Back At Bank CEOs In Stablecoin Rewards Clash

bitcoinist1 год тому

Here Are The Major Bitcoin Levels To Watch After Breaking $80,000

Bitcoin has closed a week above $80,000 for the first time since late January, strengthening the bullish case after breaking through the $78,000 to $80,000 bearish order block. The key to future price action now depends on whether bulls can hold two critical levels. The first is the $78,000 floor, which must be defended to confirm the former resistance zone has turned into support. The second is the $82,000 lower-high area; a clean break above it could open the path toward the next major resistance at $90,000. However, a truly bullish trend shift would only be confirmed with a high-timeframe close above the $97,900 "Change of Character" level, which would break the pattern of lower highs formed since late 2025. While currently trading around $81,000, analysis suggests there remains a significant chance Bitcoin retests the $60,000 zone before any sustained upward move.

bitcoinist1 год тому

Here Are The Major Bitcoin Levels To Watch After Breaking $80,000

bitcoinist1 год тому

Zcash Is Up 1,500% And Its Biggest Backer Says This Is Why

Zcash (ZEC) has surged approximately 1,500%, a rally attributed by prominent backer Josh Swihart to fundamental resets in governance, product strategy, narrative, and organization. Three years ago, Zcash had strong cryptography but weak momentum. Today, shielded transaction adoption has risen dramatically, and over $3 billion in value is held in shielded wallets. Key changes include a governance reset where direct funding to core institutions ended, breaking a perceived "stranglehold" and empowering the broader community. Product focus shifted to user adoption, exemplified by the Zodl wallet, which contributed to shielded supply rising from 11% to about 30%. The narrative moved from "privacy coin" to "unstoppable private money," improving institutional perception and leading to listings and investment. Organizationally, key developers formed the Zcash Open Development Lab (ZODL), raising $25 million to scale adoption. Current priorities are improving user experience, scalability (targeting faster block times), and post-quantum security. Swihart concluded these compounded efforts explain Zcash's accelerated growth.

bitcoinist2 год тому

Zcash Is Up 1,500% And Its Biggest Backer Says This Is Why

bitcoinist2 год тому

Торгівля

Спот
Ф'ючерси
活动图片