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Here’s why the crypto crash is intensifying as liquidations hit $1.6 billion

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Here’s why the crypto crash is intensifying as liquidations hit $1.6 billion

The ongoing crypto crash intensified on Saturday, with Bitcoin and most altcoins being in the deep red.

Summary

  • The crypto crash accelerated on Saturday, with Bitcoin tumbling to $75,000.
  • The market capitalization of all coins dropped to $2.7 trillion.
  • Bitcoin and the broader crypto market is reacting to the soaring risks.

Bitcoin (BTC) dropped below the important support level at $80,000 for the first time in months, while Ethereum (ETH) moved to a low of $2,300. The market capitalization of all tokens dropped by 5.5% in the last 24 hours to $2.63 trillion.

The worst-performing tokens were cryptocurrencies like River, Story, Lighter, Virtuals Protocol, Worldcoin, and Pudgy Penguins, which plunged by over 15%.

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This crypto crash happened as the futures open interest in the industry continued falling, reaching a low of $113 billion, and total liquidations hit over $1.6 billion. 

Bitcoin liquidations rose to $570 million, while Ethereum positions worth over $554 million were liquidated. The other top liquidations were coins like Solana and XRP. Over 408k traders were liquidated.

Bitcoin and the crypto market crashed as investors reacted to the ongoing ETF outflows in the United States, which signified limited buying among institutional and retail investors. Data shows that Bitcoin ETFs have had outflows in the last three consecutive months. Other ETFs like XRP and Solana continued to underperform.

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The crash happened as the Crypto Fear and Greed Index remained in the red. After peaking at 60 this year, the index tumbled to the fear zone of 26.

Investors are fearful that Donald Trump nominated Kevin Warsh to become the next Federal Reserve Chairman. Warsh has a history of delivering highly hawkish statements, meaning that he will become like Jerome Powell once confirmed by the Senate.

Additionally, there are concerns that Trump will attack Iran in the coming days, a move that will lead to higher crude oil prices and higher market volatility. Iran has hinted that it will respond strongly if the US attacks, including by shutting the Strait of Hormuz.

As a result, Bitcoin has constantly underperformed the market whenever major risks emerged, raising concerns about its role as a safe-haven asset.

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Crypto World

Crypto.com Launches OG Prediction Market Platform

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Crypto.com Launches OG Prediction Market Platform

Crypto.com has spun out its prediction markets business, first launched in 2024, into a standalone platform called OG, competing with the likes of Polymarket and Kalshi. 

OG is powered by Crypto.com Derivatives North America (CDNA), a Commodity Futures Trading Commission-registered exchange and clearinghouse and affiliate of Crypto.com

OG said on Tuesday that it is only available in the United States for now.

Entering a ‘deca-billion dollar’ industry

Kris Marszalek, co-founder and CEO of Crypto.com, highlighted the firm’s growth in the prediction market space as the reason for launching a dedicated platform. 

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Crypto.com first announced the launch of a “sports event trading” product for US users in December 2024.

“We’ve experienced 40x weekly growth in our prediction market business over the last six months. This type of growth warrants a concerted effort with a standalone platform.”

Related: Polymarket strikes prediction market deal with major US soccer league

Nick Lundgren, chief legal officer of Crypto.com and new CEO of OG, described prediction markets as a “deca-billion dollar industry.” 

However, OG is entering a crowded space. Coinbase launched its own prediction market platform in the US in partnership with Kalshi in late January, while Hyperliquid proposed plans to expand into prediction markets on Monday. 

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Boom time for prediction markets

OG is debuting amid accelerating growth in prediction markets, with Wall Street exploring event contracts for new use cases beyond blockchain betting.

Prediction markets have seen 130-fold growth, from less than $100 million per month in early 2024 to over $13 billion by the end of 2025, according to International Banker. 

The combined volume for market leaders Polymarket and Kalshi was $37 billion in predictions placed in 2025, and the two platforms raised $3.6 billion in equity investment in 2025.

Meanwhile, prediction market firm revenues are expected to balloon from around $2 billion annually to over $10 billion by 2030, according to the Citizens Financial Group.

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Polymarket and Kalshi volumes, categories, and top markets. Source: DeFi Rate

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