The global cryptocurrency market faced a significant downturn, with Bitcoin experiencing a 10% drop in value within the last 24 hours. This decline led to a heavy loss for the overall crypto market, causing the cumulative market capitalization to fall by more than 8%, reaching $2.15 trillion.

Data from Coinglass revealed that approximately 140,000 traders were liquidated in the past day, surpassing the $450 million mark in total liquidations encompassing both long and short positions. The largest single liquidation order occurred on the OKX crypto exchange for an ETH-USDT-SWAP valued at $6.07 million.

Within a short span of one hour, around $100 million in liquidations were recorded, with nearly 95% (approximately $94 million) attributed to long positions. This indicates that traders were expecting a reversal from the downward trend. Nonetheless, major digital assets in the crypto market experienced significant drops.

Bitcoin's price plummeted by 10% in the last day, with a decrease of more than 13% over the past week. Trading at an average of $57,606, Bitcoin's 24-hour trading volume surged by 72%, reaching $43 billion.

April posed challenges for Bitcoin, marking its worst performance since November 2022 when the FTX empire of Sam Bankman-Fried (SBF) collapsed. The enthusiasm surrounding the launch of US exchange-traded funds (ETFs) for Bitcoin has significantly diminished.

The ETFs brought a frenzy that propelled Bitcoin to a nearly $74,000 record high in March. However, as investor interest in riskier assets fluctuated due to diminishing hopes for Federal Reserve interest-rate cuts, inflows into these products substantially decreased.

In April, the 11 US spot ETFs experienced net outflows of $182 million, a sharp contrast to the $4.6 billion net inflows observed in March. Despite receiving regulatory approval from the US Securities and Exchange Commission (SEC) in January, the ETFs failed to maintain excitement among investors.

Notably, crypto mining stocks like Marathon Digital Holdings Inc. and Riot Platforms Inc. incurred losses alongside the decline in Bitcoin's price. Conversely, MicroStrategy Inc., recognized for its Bitcoin holdings, reported a first-quarter loss despite the surge in cryptocurrency value during that period.