Is the Crypto Bull Run Dead? 444,000 Traders Just Got Wiped Out!

Jakarta, Pintu News – The crypto market has been hit by another big storm. On April 7, 2025, more than 444,000 traders were liquidated with total losses reaching IDR 22 trillion ($1.37 billion).

Extreme fear sentiment gripped the market once again, as the global crypto market capitalization declined to pre-election levels.

Is this the start of a longer bear market or just a temporary correction before the next big rally?

Mass Liquidation Wave and Bitcoin (BTC) Crash

Quoting the Coinspeaker report (4/7/25), data from CoinGlass shows that in the past day, the total liquidated crypto trading positions reached $1.37 billion or around IDR 23.2 trillion.

Of this amount, around $1.2 billion (IDR 20.3 trillion) came from long positions, while the rest from shorts. This indicates that many traders were expecting the market to go up – but were instead hit by the harsh reality.

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Bitcoin alone was the biggest victim with liquidations totaling $467 million. The majority were long positions totaling $401 million, with the largest single position of $16.3 million liquidated on Bitfinex. It was one of the worst days for traders since the start of 2024.

Crypto Market Stuck in “Extreme Fear” Zone

Furthermore, the global crypto market capitalization plummeted 11% to $2.37 trillion (IDR 40.2 quadrillion) (4/7). This is similar to where it was before the US election in November 2024, suggesting the market is back in a zone of high uncertainty.

Interestingly, trading volumes tripled to $130 billion, signaling traders rushing to get out of the market or trying to profit from the volatility.

According to CoinMarketCap, current market conditions are in the “Extreme Fear” zone – an indicator that often marks the emotional low point of market participants.

However, some analysts see it as a buying opportunity, while others warn that the selling pressure could linger.

CryptoQuant CEO: Bull Run is Over

CryptoQuant’s CEO, Ki Young Ju, stated plainly that “the Bitcoin bull cycle is over.”

According to him, selling pressure is very high and the demand for accumulation is not strong enough to withstand the price drop. Even small sales can cause prices to fall dramatically.

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He estimates that if there are no major catalysts in the near future, the market is likely to enter a bear market over the next six months. In his view, the selling pressure will ease, but the recovery period could be long before the next rally appears.

US Recession Fears Worsen the Situation

One of the main triggers for this panic is the growing fear of a recession in the United States.

A report from Reuters shows that Goldman Sachs gives a 45% chance of a recession in the next 12 months. The cause? Economic and policy uncertainty, especially due to President Donald Trump’s retaliatory trade tariffs.

The Volatility Index (VIX) surged to 45.3-the highest in five years since April 2020. The stock market also crashed, with the S&P 500 and Dow Jones indices falling 5.97% and 5.5% respectively. This situation reinforces the narrative that investors are running away from risky assets, including crypto.

Arthur Hayes: Take a Breath, Crypto Can Rise Again

But not everyone is pessimistic. BitMEX co-founder Arthur Hayes sees an opportunity behind this turmoil. He believes that trade tariffs that make the US dollar weaker could eventually be the driver of Bitcoin (BTC) price increases in the long run.

According to Hayes, despite the current bloody conditions, crypto still has the power to bounce back as an alternative exchange rate and hedge against adverse monetary policies. “This correction hurts, but it’s not the end of the world,” he wrote.

Overall, the wave of liquidations that occurred not only showed massive losses, but also highlighted how fragile market confidence is at the moment.

With global economic uncertainty and negative sentiment from within the crypto market itself, many are starting to question: Is the bull run really over? Or is it just a “trap” before the next surge? One thing is for sure, investors and traders should be extra vigilant in the coming months.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coinspeaker. 444K Traders Lost $1.3B: Why the Bull Run Might Have Ended. Accessed April 8, 2025.