Key Insights:
- Over $600 billion in crypto market value was erased as Bitcoin fell to $102,000 and major altcoins like ETH, SOL, ADA, and DOGE plunged 10–20%.
- Market analysts, including Raoul Pal and Miles Deutscher, urged investors to buy the dip, emphasizing that long-term fundamentals remain intact.
- Arthur Hayes attributed the steep altcoin sell-off to auto-liquidations of cross-margined positions on major centralized exchanges (CEXs).
The crypto market faces one of the largest liquidations in history, totaling $19 billion, after US President Donald Trump announced a 100% tariff on China. These sent the entire crypto market crashing with top cryptos like BTC, ETH, XRP, SOL, DOGE, dropping 10-20% each. Over $600 billion of investors’ wealth was wiped out. Market experts believe that this is the right time to buy the dips and accumulate for the long term.
Investors Should Buy the Crypto Market Dips
Former Goldman Sachs executive and Wall Street veteran Raoul Pal has weighed in on the recent market correction, advising investors to buy the dips. Pal addressed the recent market turmoil, emphasizing that short-term volatility is “just noise” for investors who avoid leverage and focus on long-term fundamentals.
Pal stated that long-term holders only need to consider two questions: whether the world will become more digital tomorrow than today. The second one is whether the liquidity and business cycles have peaked or are still expanding to finance the $10 trillion in upcoming debt rollovers over the next year.
“If both answers are yes, then it’s all noise,” Pal noted, adding that for investors with a five-year or longer horizon. “Nothing has changed. Buy more if you can. Go back to the beach,” he added. In a separate message on the X platform, Pal wrote:
Another analyst, Misel Deutscher, also stated that the current crypto market dip presents a strong opportunity to begin dollar-cost averaging (DCA) into leading altcoins.
Deutscher highlighted tokens such as BNB, MNT, and SOL as examples of assets showing relative strength before the recent downturn. He advised investors to focus on fundamentally solid projects that remain structurally unaffected by the ongoing leverage wipeout.
Investors Lose $600 Billion In Crypto Market Crash
Following the massive correction today, the overall crypto market cap tanked to $3.7 trillion. This is more than $600 billion lost from the $4.3 trillion earlier this week.
Crypto analyst Ted Pillows commented on the historic market crash, noting that Bitcoin plunged to $102,000, triggering the largest liquidation event in crypto history. Nearly $20 billion in long positions were wiped out within 24 hours as the market faced extreme volatility.
Pillows added that Bitcoin is currently attempting to reclaim the $113,500 level. This could pave the way for a short-term relief rally if successfully held.
Pillows also stated that more than $40 billion in open interest has been wiped out of the crypto market in 24 hours. This is like wiping out months of leverage in a while.
Despite rising trade tensions between the United States and China, both countries are preparing to inject substantial liquidity into global markets. BitMEX co-founder Arthur Hayes believes that this keeps the Bitcoin bull cycle ongoing.
Altcoins ETH, SOL, ADA, DOGE Correction Over 10%
In addition to Bitcoin, the massive sell-off triggered a cascading effect for altcoins with top digital assets like ETH, SOL, ADA, and DOGE dropping 12-20% in last 24 hours.
Arthur Hayes noted that the sharp decline across several altcoins was likely triggered by automatic liquidations on major centralized exchanges (CEXs).
According to Hayes, these exchanges reportedly liquidated collateral linked to cross-margin positions, which intensified the sell-off. This contributed to a steep drop in altcoin prices during the market downturn.
Furthermore, some of the coins, like ATOM, corrected as much as 90% on crypto exchange Binance, before recovering again. Market experts see this magnitude of crash to be grater than the COVID crash, and even the FTX crash.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
