Crypto Liquidations Hit $477 Million As Bitcoin Faces Rejection

The cryptocurrency market recorded liquidations worth $477 million as Bitcoin (BTC) experienced price rejection again.

Bitcoin price slipped from a high of $105,884.23 shortly after attempting to climb toward its all-time high of $108,268.45. Several altcoins also suffered the same drop after registering a price rally.

This fueled the crypto liquidations over the past 24 hours

Bitcoin Leads Liquidation Figures

CoinGlass data shows Bitcoin’s total liquidation in the last 24 hours stood at $86.82 million.

Short position traders accounted for the larger chunk of the liquidations, amounting to $55.11 million. Long position traders only saw $35.71 million wiped out from their holdings.

This suggests that market participants were not betting on the price retracement of Bitcoin.

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It also highlights the unstable price fluctuations that traders have been contending with BTC in the past few days.

Among altcoins, Solana (SOL) flipped other assets to become the best-performing coin on the top 50 listed by CoinMarketCap.

After soaring to a new ATH of $268.74, SOL’s liquidation surpassed $30.97 million.

Like Bitcoin, SOL had more liquidation among the short sellers, $19.08 million, as opposed to the long liquidations worth $11.89 million.

Ethereum (ETH), XRP, and Dogecoin (DOGE) flipped the trend as higher liquidations were seen among long traders.

ETH’s total liquidation count amounted to $76.28 million, out of which the long position cleared off $57.16 million.

XRP and DOGE saw total liquidations of $25.96 million and $32.73 million respectively. While longs for XRP amounted to $17.31 million, for DOGE, it came to $22.20 million.

This came as XRP lost 10 cents and slipped from a peak of $3.31 to $3.21. DOGE dropped from $0.4335 by 3.03% to $0.3988 in the last 24 hours.

External Factors Influencing Market Dynamics

The price rejection experienced by Bitcoin and altcoins has sparked discussions among stakeholders.

The sudden spike in the 10-year U.S. Treasury yield might have influenced the fall in BTC price.

Given the historically opposing relationship between Treasury yield and Bitcoin, a spike usually triggers pressure on BTC.

Other financial experts have also attributed BTC’s decline to the increasing correlations between digital assets and traditional equities.

Notably, the correlation is most visible in the NASDAQ. It has been reported that a selloff in equities typically impacts the crypto space.

Additionally, the profit-taking triggers for traders short of Bitcoin recorded severe liquidation.

In all, some predict that Bitcoin could rebound, particularly with the bullish sentiments surrounding the inauguration of President-elect Donald Trump.

The wave of institutional investors in digital assets could support a price rise.

Is Trump’s Inauguration Influencing Institutional Interests?

With the inauguration on Monday, January 20, many speculations on a likely shift in Bitcoin policy have taken shape.

Some anticipate the new administration adopting pro-crypto policies, including establishing a U.S. Strategic Bitcoin Reserve.

Given the increased demand for the asset, such a move could drive the BTC price up to record levels.

Furthermore, the anticipation of this development in the U.S. has sparked increased interest from institutional investors.

Recently, a traditional financial institution in Switzerland, PostFinance AG, unveiled Ethereum staking as part of a larger plan to expand crypto offerings.

Market observers predict that as more institutional players enter the crypto space, the price of digital assets, particularly Bitcoin, will soar.