Crypto Market Suffers $386 Million As Bitcoin And Altcoins Shed Gains

The cryptocurrency market has suffered from a wave of liquidations as Bitcoin (BTC) and altcoins lose their gains. The price of Bitcoin has dropped below the $100,000 mark, while Ethereum (ETH) fell below $3,500.

The decline in the crypto market comes ahead of Donald Trump’s inauguration as US President.

Bitcoin Price Sheds $5,000 in 1 Hour Amid Slipoff

Bitcoin’s price has shed $5,000 from its recently achieved gains following the recent market liquidation in just one hour.

According to current market data, Bitcoin price dropped to an intraday low of $97,332.

After paring off some gains, the flagship cryptocurrency is now trading at $97,632. Bitcoin has decreased roughly 4.57% over the last 24 hours and 2.75% in the past month. On Tuesday, the flagship coin came close to reclaiming the $103,000 price mark before dropping to the current level.

Bitcoin’s abrupt drop, which spurred a broader market sell-off, responds to the most recent US macroeconomic data.

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Buyers who saw gains during Monday’s trading session may have also contributed to the recent pullback. These short-term investors sold huge amounts of their Bitcoin holdings, contributing to the market sell-off.

Bitcoin price is still steady; however, further downside risks remain.

A dip below $92,000 may signal that Bitcoin is forming a bearish head-and-shoulders pattern, with a potential downside range as low as $80,000.

The closest resistance point is around the all-time high of $106,000. However, the 50-day Exponential Moving Average (EMA) provides short-term support.

The Crypto Liquidation Data for Top Coins

According to recent data provided by Coinglass, approximately $273 million in crypto positions were liquidated within an hour. Long positions accounted for the vast majority of the wipeout, amounting to $348.61 million.

Notably, in the last 24 hours, 133,185 traders suffered the unexpected liquidation.

Bitcoin, Ethereum, Solana, XRP, and Dogecoin lead by total value liquidated. Bitcoin liquidations were $85.25 million in the last 24 hours. This features $71.93 million for long positions and $13.33 million in shorts.

For Ethereum, the liquidations reached $74.29 million, 64.97 million long, and $9.23 million in shorts. Dogecoin liquidations reached $18.02 million, while Solana saw liquidations of $11.1 million.

The Binance crypto exchange comes first place with a total amount of liquidations at $108.26 million. OKX and Bybit come in second and third place with $82.76 million and $82.09 million respectively.

Is Trump-Trade Set to Take Effect Ahead of Inauguration?

The drop in the crypto market comes ahead of Donald Trump’s inauguration scheduled to take place on January 20.

The market is highly anticipating that Trump’s new administration will ignite a major rally for top cryptocurrencies.

Therefore, the recent sell-off in the market has raised discussions about whether the so-called Trump trade is still on track to take effect ahead of the inauguration.

Several analysts pointed to the regime change that will take place and the expected impact on policy when Bitcoin rallied to $100,000.

They think the recent market decline is likely a correction and not a bearish twist in the market.