$19B Crypto Liquidation Hits Crypto Market, Bitcoin Shows Resilience

The crypto market experienced another steep fall today, dropping nearly 9.9% within 24 hours and extending a week-long decline of over 11%. Growing panic among traders and a sharp correlation with traditional equity markets intensified the sell-off.

Crypto Market Extends Decline as Fear Grips Investors

The market experienced a huge wave of liquidation with positions worth approximately 19.16 billion wiped off within one day. This caused additional panic selling as leveraged accounts were forcibly sold at the leading exchanges.

At the same time, the Bitcoin dominance grew to 59.84, which is a 1.25% upsurge over the last day. Investors seemed to move back to Bitcoin, seeing it as a rather lower risk asset in terms of volatility.

Strong macroeconomic correlation was highlighted by the analysts, who found that crypto and the Nasdaq-100 (QQQ) had a 0.91 correlation. This correlation suggests that the crypto sentiment is being strongly affected by risk aversion in the tech industry.

In price action, Bitcoin dropped more than 8%, hovering around $110,000 after touching recent highs. Ethereum (ETH) slid below $4,000, registering a decline of over 13%. Other leading altcoins such as BNB, Solana (SOL), and XRP also faced significant losses, reinforcing the overall bearish trend.

This week was also characterized by significant changes in the crypto market , such as the fluctuation of Bitcoin prices, the involvement of large banks in stablecoins, and the huge investment round at Kalshi. The future of the markets is also likely to be volatile as analysts anticipate increased economic and policy-related uncertainty.

Bitcoin Volatility After Tariff Announcement

The use of Bitcoin went through a turbulent phase after President Donald Trump declared that he would levy a 100% tariff on Chinese imports. The most popular cryptocurrency took a dip to 102000, and then it stabilized, much to the panic of investors.

According to Swan Bitcoin CEO Cory Klippsten, the crypto market could be becoming even more unstable in the nearest days. He described that Bitcoin had the potential to get dragged around a bit and then supported and possibly unlinked to the overall risk trends.

Klippsten pointed out that macro-induced dips can easily sweep leveraged traders, and the market will move well thereafter. Bitcoin long positions amounting to over 2.19 billion were sold off in the space of 24 hours. However, in the wider crypto market, all long liquidations have 8.02 billion, as per CoinGlass. The trend marks a short-term downward but a possible rebound on the second wave of the bullish movement.

Major Banks Eye G7-Linked Stablecoins

A coalition of leading global banks has begun exploring the creation of stablecoins backed by G7 currencies. These banks include Bank of America, Goldman Sachs, Deutsche Bank, Citi and BNP Paribas. Their shared announcement contained the plans about the 1:1 reserve-backed digital currency that runs on the public blockchains.

The program is supposed to enhance competition, efficiency of payment, and ensure the regulatory compliance and risk management standards. These stablecoins would be tied to the primary fiat currencies, including the US dollar, euro, and yen.

The launch date of the project is not clear yet, it will be in competition with the dominant USDt (USDT) of Tether. With the signing of the GENIUS Act, which is approved by the President Trump, such ventures are likely to receive a regulatory boost when it becomes operational in approximately 15 months.

Kalshi Raises $300 Million for Global Expansion.

Kalshi, a prediction market platform, has raised 300 million dollars in Series D funding, co-led by Andreessen Horowitz and Sequoia Capital. Other investors are Paradigm, Coinbase Ventures, and CapitalG. The funding also increased the valuation of Kalshi to $5 billion, compared to June, when it was $2 billion.

The firm intends to enter 140 markets where the user will get to access global prediction markets with the same product experience. The step makes Kalshi the first international unified prediction platform. The fast pace of its development highlights the growing attention to controlled prediction markets in the new crypto market environment.