2026 Crypto Market Shock: Bitcoin and Ethereum Plunge Amid $19 Billion Liquidation

Selling Pressure and Negative Divergence Global cryptocurrency markets have begun 2026 with one of their worst historical performances.
Since the start of the year, Bitcoin has lost approximately 24% of its value, falling to the $67,000 level, while Ethereum has retreated to the $2,000 mark following a 34% decline.
Analysis based on CoinGecko data indicates that crypto assets are significantly diverging from traditional financial markets.
While the S&P 500 has seen a modest 0.4% increase and the Dow Jones has risen 2.3% since January, Bitcoin has lost more than 46% of its value compared to its peak in October.
tariff threats against China.
According to CoinGlass data, more than $19 billion in leveraged positions were liquidated during the sudden price collapse.
This figure marks one of the largest single-day liquidation events in the history of cryptocurrency.
Liquidity Crisis in Institutional Platforms The market turbulence has also impacted major crypto exchanges and financial service providers.
Coinbase and Gemini reported fourth-quarter financial results that fell below expectations, while crypto lending firm BlockFills announced a suspension of customer withdrawals.
The company, which reportedly faces losses exceeding $75 million, is said to be in negotiations for a potential sale.
Analysts emphasize that the limited reaction to positive news is deepening the prevailing pessimism in the market.