Crypto Sell Off Today: $470 Million Liquidated as Bitcoin, Ethereum & Solana Plunge

The crypto market saw a brutal sell-off to start the week, with over $470 million in trader liquidations as Bitcoin, Ethereum, and Solana plunged sharply. Investors turned cautious ahead of critical U.S. economic data and growing recession fears, leading to the massive crypto crash.

Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, led the decline. Bitcoin dropped 2% while Ethereum fell over 3%, wiping out billions in market value. Solana, a top altcoin, also suffered significant losses, down nearly 5% in the 24-hour period.

The broad cryptocurrency sell-off was triggered by a combination of macroeconomic factors weighing on investor sentiment. With the release of key U.S. inflation and jobs data on the horizon, crypto traders grew increasingly risk-averse, leading to the large-scale liquidations. Fears of an impending economic recession further compounded the market sell-off, as investors fled riskier assets like crypto.

The crypto crash comes at a precarious time, as the digital asset market has already endured a brutal bear market over the past several months. Major cryptocurrencies like Bitcoin and Ethereum are down over 60% from their all-time highs, and the latest plunge only exacerbates the pain for battered crypto investors.

Looking ahead, the crypto market's trajectory will likely hinge on the upcoming economic data releases and the Federal Reserve's policy decisions. If the economic outlook worsens, the crypto sell-off could continue, potentially leading to further liquidations and downward price pressure on Bitcoin, Ethereum, Solana, and other leading digital assets.