The crypto market has kicked off the week with a sharp downturn, as a wave of liquidations wiped out $620.5 million in the past 24 hours.

The sell-off was fueled by a steep decline in Bitcoin’s (BTC) price, which plunged to as low as $80,000 over the weekend. The sudden drop triggered widespread margin calls, forcing traders out of leveraged positions and amplifying volatility across the market.

Crypto Market Hit by $620 Million Liquidation Wave

According to data from Coinglass, the past 24 hours saw a massive shakeout in the crypto market, with 225,381 traders liquidated. 

Long positions took the hardest hit, accounting for $529.4 million in losses. Meanwhile, short positions saw $91.1 million in liquidations.

Bitcoin led the liquidation spree, with $239.5 million in positions wiped out. $205.6 million came from long traders caught off guard by the market downturn, triggering forced sell-offs. The largest single liquidation order occurred on Binance, where a BTC/USDT position worth $32.0 million was wiped out.

Analyst Ash Crypto highlighted the severity of the recent market turmoil in the latest X (formerly Twitter) post.

“Bitcoin long liquidations in all exchanges exceeds 3AC, Celsius and FTX collapse,” the post read.

Data from CryptoQuant shows that Bitcoin’s long liquidations surged to 14,714 yesterday. For comparison, 13,453 BTC were liquidated during the Celsius crash, 1,807 BTC during the FTX collapse, and 1,311 BTC in the Three Arrows Capital (3AC) meltdown.

The wave of liquidations comes as Bitcoin struggles in the market, facing renewed downward pressure. Contrary to expectations, President Donald Trump’s Strategic Bitcoin Reserve executive order triggered a sharp decline in Bitcoin’s value.

Furthermore, the downturn intensified as recession fears escalated, adding further uncertainty to the market.

“An ugly start to the week. Looks like BTC will retest $78,000,” Arthur Hayes, former BitMEX CEO wrote.

He predicted that if $78,000 fails to hold, $75,000 will be the next critical support level. Hayes also pointed out a large amount of open interest (OI) in Bitcoin options between $70,000 and $75,000. Thus, if BTC enters that range, it could lead to heightened volatility.

For now, BTC continues to hold above $80,000. At the time of writing, it was trading at $82,629, down 3.9% in the past 24 hours. 

Market Plunge Forces Crypto Whales Into Liquidation Chaos

The broad impact of Bitcoin’s price drop was felt across the sector. The total crypto market cap suffered a $148 billion drop. Ethereum (ETH) was the second most affected asset, with $108.5 million in liquidations. As per BeInCrypto data, ETH was down 5.3% over the past day, trading at $2,062 at press time.

The downturn has placed whales under increasing pressure, with some now facing the risk of massive liquidations. According to Lookonchain data, a whale holding 65,675 ETH (worth $135.8 million) on Maker is on the verge of liquidation. 

The whale’s health rate has dropped to 1.05, with a liquidation price set at $1,931, raising concerns about potential forced sell-offs if ETH continues to decline.

Additionally, an on-chain analyst revealed that World Liberty Financial’s (WLFI) investment portfolio has suffered heavy losses. The firm had initially invested $336 million across nine tokens. Yet, the portfolio’s value has plunged to $226 million, marking a $110 million loss. 

Ethereum makes up 65% of the entire portfolio, making it the most affected asset. The average purchase price of ETH was $3,240, but with ETH now trading around $2,000, the DeFi project has suffered a 37% loss, amounting to $80.8 million.

Despite the turmoil, OnchainLens reported that a whale has increased long positions across multiple assets, including Solana (SOL), Ethereum, dogwifhat (WIF), and Bitcoin.

The positions have turned against the trader, who is now sitting on an unrealized loss of $14.3 million. The whale still has an open order worth $8.4 million for these tokens, further increasing risk exposure. Moreover, the whale supplied 19,413 ETH to fund these trades and borrowed $16.2 million USDC to go long on HyperLiquid.

However, not all whales are losing money in this market shakeout. Data from Lookonchain highlighted that another whale has successfully shorted BTC multiple times during recent price drops. The trader has accumulated an unrealized profit of over $7.5 million.

“He has now set additional short positions at $92,449 – $92,636 and placed limit orders to take profit between $70,475 – $74,192,” the post further added.

Crypto markets brace for volatile days ahead, with key US economic data due for release this week, starting Tuesday. These macroeconomic events could affect the portfolios of Bitcoin (BTC) holders, making it imperative for investors to adjust their trading strategies.

Economic developments are progressively influencing Bitcoin market sentiment, increasing the likelihood of volatility this week.

US Economic Data With Crypto Implications This Week

The following macroeconomic data points could influence Bitcoin sentiment this week.

JOLTS

Starting the list of US economic data with crypto implications this week is the release of US job openings data on Tuesday, March 11. Commonly referred to as the Job Openings and Labor Turnover Survey (JOLTS), this data point could significantly sway Bitcoin sentiment by providing insights into the health of the labor market and broader economy.

If the data indicates a strong labor market with high job openings—say, exceeding the previous 7.6 million mark—it might signal persistent economic strength. This could reduce expectations for imminent Federal Reserve (Fed) rate cuts.

Historically, a strong labor market can bolster the US dollar and traditional assets like stocks, drawing investors away from riskier assets like Bitcoin. This could dampen Bitcoin sentiment, as investors might perceive less need for a decentralized hedge against monetary easing.

Conversely, if job openings come in lower than anticipated, it could heighten recession fears or signal a cooling economy. Such an outcome would prompt speculation of Fed intervention through rate cuts. This scenario often boosts Bitcoin’s appeal as a “digital gold” or haven, potentially driving positive sentiment and price momentum among crypto enthusiasts.

CPI

The US CPI (Consumer Price Index) data, set for release on Wednesday, March 12, could also sway Bitcoin sentiment. This data will signal inflation trends that influence Fed policy.

A higher-than-expected CPI forecasted at 2.9% compared to the previous 3.0% might suggest persistent inflation. This would reduce hopes for rate cuts and strengthen the dollar, dampening Bitcoin’s appeal as a hedge. Such an outcome could lower sentiment and prices as investors favor traditional assets.

On the other hand, a softer CPI could fuel expectations of looser monetary policy, weakening the dollar and boosting Bitcoin as a risk asset. This would lift sentiment among crypto traders.

“CPI report on Wednesday – Core Inflation number going to come in cool – potentially lower than most expect. BTC will pump,” one user on X stated.

Initial Jobless Claims  

The US Initial Jobless Claims data, due Thursday, March 13, could also sway Bitcoin sentiment by reflecting labor market strength or weakness.

If claims drop below the expected 220,000 (following last week’s 221,000), it might signal a strong economy. This could strengthen the dollar and shift investors’ focus to traditional assets like stocks. Such an outcome would dampen Bitcoin’s appeal as a risk asset, lowering sentiment.

Meanwhile, higher-than-expected claims might indicate economic softening, raising hopes for Fed rate cuts. This often boosts Bitcoin as a hedge against fiat weakness, lifting sentiment and prices.

PPI

The US PPI (Producer Price Index) data, scheduled for release on Thursday, March 13, could impact Bitcoin sentiment by revealing wholesale inflation trends.

A higher-than-expected PPI, forecasted at 0.3% month-over-month, might indicate rising producer costs, potentially signaling persistent inflation. This could reduce expectations for Fed rate cuts, strengthening the dollar and pressuring Bitcoin as a risk asset, thus dampening sentiment.

However, a lower PPI could ease inflation fears, boost rate-cut hopes, and enhance Bitcoin’s appeal as an inflation hedge, lifting sentiment.

“A huge week for economic data, with JOLTS, CPI & PPI. We could either see some strength and markets claw back some of the losses of the last couple of weeks, or confirmation there are underlying issues and markets continue to sell off,” market analyst Mark Cullen indicated.

Consumer Sentiment

The US Consumer Sentiment Index, due for release on Friday from the University of Michigan, could significantly influence Bitcoin sentiment by reflecting public confidence in the economy.

A strong reading, potentially above the anticipated 64.0 (based on recent trends), might suggest optimism about economic stability, bolstering traditional markets and the dollar. This could dampen Bitcoin’s allure as a hedge against uncertainty, leading to bearish sentiment among crypto investors, as funds might flow toward equities.

Conversely, a weaker-than-expected figure could signal economic unease, enhancing Bitcoin’s appeal as a decentralized asset amid fears of inflation or recession. This would boost bullish sentiment and potentially its price. Given Bitcoin’s sensitivity to macroeconomic cues, this data could sway trader perceptions sharply.

“The University of Michigan’s consumer sentiment survey can tell us how optimistic people feel about the economy. This can impact consumer spending, which is a major driver of economic growth,” Pennybois Trades Alert highlighted in a post.  

Pi Network users, known as Pioneers, are expressing growing frustration over their inability to transfer their mined Pi Coins (PI) to the blockchain’s mainnet. 

The concerns mount as the network’s Grace Period deadline approaches, leaving users with just four days to complete the necessary migration process.

Pi Network Sets March 14 Deadline for KYC and Mainnet Migration

The Pi Network has set a critical deadline for users to complete their Know Your Customer (KYC) verification and Mainnet migration. According to the announcement, Pioneers must finalize these processes by 8:00 AM UTC on March 14, 2025. 

Failing to do so will result in the loss of most of their Pi holdings. However, coins mined within the past six months are exempt from this. The Grace Period, introduced to give users ample time to complete verification, has already been extended multiple times.

As per the Pi team, these extensions were designed to accommodate as many legitimate users as possible, ensuring their balances could be verified and migrated. 

“The end of the Grace Period is inevitable to make sure the network can move on in its new phase without large sums of unverified and unclaimed mobile balances,” the blog read.

Despite this urgency, numerous Pioneers have reported issues preventing them from transferring their PI to the Mainnet. Among them is Jaro Giesbrecht. In a post on X (formerly Twitter), Giesbrecht claimed he had completed the Mainnet checklist but remained stalled. 

“The Pi network has done nothing to help solve this problem. It is a very common problem. Pi has done nothing to help fix this and other problems,” he wrote.

Giesbrecht intensified his criticism, arguing that the deadline should be extended until all Pioneer issues are resolved. He suggested that failing to do so would render the entire process ineffective and raise concerns about the project’s legitimacy.

The issue appears widespread, with other Pioneers echoing similar complaints on X.

“The whole process is a joke. ~80% of my balance shows as unverified, although all of my security circle has completed KYC. No additional actions are listed to be taken in order to clear this up. Furthermore, nobody got back to me on a support ticket I opened weeks ago. What gives?” remarked a user.

Furthermore, users also noted that Step 9 on the Mainnet checklist—”Migrate to Mainnet”—remains unresolved, leaving their Pi balances in limbo.

“What’s the problem with the mainnet migration? Are we to forfeit our mined PI due to an error from your end?” a user posted.

Pi Coin Sees Double-Digit Losses Amid Binance Listing Uncertainty

While the looming deadline worries many, others eagerly await March 14, widely recognized as Pi Day. The occasion has sparked optimism for a potential price surge despite Pi Coin’s recent struggles in the market.

“As long as we don’t break $1.2 support, I’m bullish. PI day is approaching, and hopefully, we will see a pump,” an analyst wrote.

Over the past week, PI has lost 16.3% of its value. Moreover, in the last 24 hours, it suffered a double-digit drop, trading at $1.40 at press time. This represented a decline of 12.2% over the past day alone.

The Pi Network community’s concerns go beyond price movements, as many Pioneers continue to push for Binance to list Pi Coin.

While Binance has not officially announced anything regarding PI, it recently introduced “Vote to List” and “Vote to Delist” features. The system has fueled hopes that the move would make it easier for PI to get listed. 

However, these tools do not grant users full authority, as Binance retains the final decision-making power. Therefore, the uncertainty surrounding the decision has led to frustration.

Notably, the community vote concluded on February 27 with an overwhelming 86% majority in favor of listing Pi Coin. Yet, with no official response from Binance, Pioneers have erupted in outrage. 

In protest, they flooded the exchange with one-star reviews on Google Play Store. A similar decline in ratings was observed on Bybit. The exchange’s CEO had previously called Pi Network a scam.