Market Remains Strong

The ensuing Bitcoin crash saw the world’s leading digital asset losing approximately 5% of its value in just 24 hours. However, experts have asked investors not to panic because the decline seems temporary. According to expert opinion, the crypto market remains strong, and the growing demand for crypto assets is a good sign for the industry’s future growth.

Analysts believe that the sharp decline that saw the market liquidating over $631 million in long positions across the derivative market was betting on prices, which marks the first significant leverage flush of 2025. According to Coinglass, Long BTC leveraged positions for January 8 totaled $111 million.

A crypto market crash like the current one isn’t unprecedented, as the market experienced a similar situation on December 18, 2024, when the derivatives market liquidated over $844 million in long positions. The liquidations accompanying the June 8 Bitcoin crash have accompanied a 12% loss of total market capitalization, where a combined $1.2 billion has been wiped off the crypto market.

The predominance of long liquidations could be a pointer toward an over-leveraged crypto market on the bullish side, caused by profit-taking and risk-off mode due to strong US economic data.