Cryptocurrency market "evaporates" more than 1.5 billion USD after a boom period

VTV.vn - Investors have just witnessed trading orders with a total value of 1.5 billion USD being wiped out in the cryptocurrency market after a sharp price drop.

The move suggests the rally was fueled by US President Donald Trump's support for the troubled asset.

During the session on September 22, Bitcoin fell as much as 2.9%, falling below $112,000 per USD. Meanwhile, Ether - the second largest cryptocurrency - plunged about 9% to $4,075/ETH.

The sell-off wiped out $1.5 billion in leveraged bets from more than 407,000 traders, according to data from Coinglass. When losses exceed a certain threshold, they are forced to liquidate their positions, a mechanism known as a “margin call.”

The sell-off has pushed the total cryptocurrency market capitalization below $4 trillion, according to data from CoinGecko. Shares of cryptocurrency exchange Coinbase also fell 2.7% in pre-market trading in New York.

Cryptocurrency prices fell amid concerns that both the assets and companies in the sector are overvalued, said Edouard Hindi, chief investment officer at asset manager Tyr Capital.

Digital asset managers typically hold large amounts of cryptocurrencies. Mr. Hindi noticed that these firms were buying fewer assets, the bitcoin and ether markets froze, liquidity decreased, and many investors liquidated their positions.

Trump has previously called cryptocurrencies a “scam.” However, he has taken a much friendlier stance in his second term. President Donald Trump and his wife, Melania Trump, have launched their own cryptocurrencies. Trump Media and Technology, the owner of the Truth Social platform, has also signed a multi-billion dollar deal with the Crypto.com exchange.

Since returning to power, the Trump administration has enacted a series of pro-crypto policies, including the creation of a strategic Bitcoin reserve and the dismissal of numerous lawsuits against companies in the industry. Congress has also passed laws allowing banks to issue stablecoins (cryptocurrencies designed to maintain price stability by being tied to real-world assets such as fiat currencies or precious metals). President Trump has also suggested that pension funds should be allowed to invest in cryptocurrencies.

Thanks to these policies, bitcoin has continuously set new highs since Mr. Trump's election victory in November 2024. Last month, the currency hit the $ 120,000 mark for the first time – double its value a year earlier.

Source: https://vtv.vn/thi-truong-tien-dien-tu-boc-hoi-hon-15-ty-usd-sau-giai-doan-thang-hoa-100250923142320992.htm