BTC, ETH Lead $403M Crypto Liquidations, What Next?

The crypto market is urgently bleeding, with massive liquidations recorded so far.

About $403 million in Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies have exited exchanges within 24 hours.

This market recorded these losses as volatility moved against futures traders.

According to Coinglass, about 117,342 traders were liquidated, leading to a total liquidation of $305.80 million at this time.

The most significant single liquidation (ETH/USDT) happened on the leading cryptocurrency exchange, Binance, valued at $12.01 million.

Current Liquidation Figures for BTC and ETH

Notably, a significant portion of this liquidation came from long traders who had forecasted a possible recovery for the crypto market.

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In other words, these traders were betting on a bullish price retracement for these cryptocurrencies.

Out of $305.80 million recorded, $216.23 million came from long traders, leaving short traders with a liquidation worth $89.57 million.

$84.68 million worth of BTC was liquidated, $76.16 million in ETH, $11.37 million in Dogecoin (DOGE), and $10.6 million in Solana (SOL).

These massive liquidations were likely fuelled by the market performance of most of the digital assets.

At the same time, Ethereum’s liquidation may have been partly influenced by the Bybit hacker case.

However, the trends in the broader market suggest that a more significant issue may be at play, thereby forcing traders out of positions due to insufficient margin.

A continuous rise in volatility may cause crypto enthusiasts and investors to raise concerns about market stability.

Bitcoin and Ethereum Price Outlook

Market data shows that Bitcoin price trades at $96,510.68, following a 1.75% price dip.

For a coin that had previously attained an All-time-high (ATH) of over $109,000, this current BTC price level is a major drawdown.

On the other hand, Ethereum is resting on the green side of on-chain charts, trading at $2,778.04.

The leading altcoin has recorded a 2.09% price increase in the last 24 hours.

The optimism of the long traders was probably ignited by more favorable policies in the United States and a shift in the region’s crypto regulations.

Under Donald Trump’s administration, the US is working on establishing its national Bitcoin strategic reserve.

This move may later bring succor to long traders, with the expectation that it might trigger a massive price rally for Bitcoin.

Despite the market conditions, the positive regulatory trend in the market remains a tailwind investors are watch out for.

How Can the Market Recover?

Several investors and traders are bracing for more volatility in the crypto market, but they may see better days if certain conditions improve.

Top of the list is price recovery for many leading digital assets, including BTC, ETH, and SOL.

The US Federal Reserve has prioritized controlling inflation by maintaining a hawkish interest rate figure for longer than market participants had initially anticipated.

With this longer pause in rate cuts, safe assets like the U.S. Treasury bonds will remain attractive, relegating volatile assets like cryptocurrencies.

However, if the Fed decides to implement a rate cut, attention may turn again to supposedly volatile assets.

Invariably, it can trigger an uptrend in the prices of risk assets like Bitcoin.