Crypto liquidations reach $1.28 billion amid Trump's silence on Bitcoin at inauguration
Crypto liquidations reach $1.28 billion amid Trump's silence on Bitcoin at inauguration
The cryptocurrency market encountered a tumultuous 24 hours, with liquidations surpassing $1.28 billion as major tokens, including Bitcoin, experienced sharp price swings.
Key Takeaways
- Crypto market faced $1.28 billion in liquidations over 24 hours, impacting 386,000 traders.
- Bitcoin showed resilience, dropping only 2.2% to $103,500, while altcoins saw sharper declines.
- Traders shifted to stablecoins amid risk aversion following Trump’s inauguration speech.
- Analysts predict continued volatility, driven by U.S. economic data and Fed rate expectations.
The turmoil was partly fueled by disappointment among some traders after Donald Trump’s inauguration speech failed to address cryptocurrency or blockchain-related policies.
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According to Coinglass data, more than 386,000 traders were liquidated within the past day, with $816 million in long positions wiped out alongside $307 million in short liquidations. Bitcoin displayed relative resilience amid the chaos, falling just 2.2% to $103,500, down from its recent high of $109,000.
Total liquidations chart. Source: CoinGlass
In contrast, altcoins like Solana and Cardano bore the brunt of the sell-off. Solana dropped over 9% in value, while Cardano declined more than 5%, reflecting broader market risk aversion. Traders appeared to shift capital into stablecoins as a safe haven, signaling cautious sentiment.
Expert insights on market trends
Market analysts highlighted the heightened volatility and shifting sentiment. Lukman Otunuga, Senior Market Analyst at FXTM, noted Bitcoin’s sensitivity to U.S. economic data and Federal Reserve rate expectations, warning that traders should prepare for further turbulence. Analysts at QCP Capital also observed elevated funding rates on derivatives platforms like Deribit, indicating underlying optimism, though the market seems to be consolidating after its recent rally.
As traders adjust to the post-inauguration landscape, the cryptocurrency market remains at a crossroads. While Bitcoin’s stability offers some reassurance, the ongoing volatility in altcoins suggests a cautious road ahead. Market participants will be closely monitoring economic data and policy developments for signs of clarity and potential recovery.
