BTC, ETH, XRP Lead $334.99M Crypto Liquidation, Key Trends To Watch?

The crypto market has recorded massive liquidations in the last 24 hours, suggesting mixed sentiment, with BTC and ETH, having suffered most.

During this period, 109,704 traders were liquidated, with long traders suffering more losses.

The total liquidation was approximately $334.99 million at the time of this writing.

Crypto Market Liquidation Data in 24 Hours

Noteworthy, this is one of the many reported liquidations the crypto community has witnessed this past week.

Of all digital currencies, Bitcoin (BTC), Ethereum (ETH), and Ripple-associated XRP suffered the brunt of the liquidations.

According to Coinglass’ data, over $186.35 million in Bitcoin was liquidated.

Long traders who placed optimistic bets on BTC registered $123.21 million worth of liquidations.

This leaves short traders with liquidations of up to $63.14 million.

The second-largest cryptocurrency by market cap suffered $23.8 million of liquidation from long traders.

The addition of short traders’ losses ($17.04 million) brings ETH liquidation to $40.84 million.

XRP saw only a little over $7.3 million in liquidation, a far-cry from the values recorded by BTC and ETH.

Other cryptocurrencies, including Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Sui (SUI), and Litecoin (LTC), were also caught in the liquidations streak.

Judging by Donald Trump’s recent announcement about a multi-crypto strategic reserve that includes XRP, ADA, and SOL, many market observers would have expected the situation to be different.

BTC, ETH, and XRP price and WTD outlook

The recorded liquidations stem from the selloff in the price of Bitcoin and underlying assets.

Bitcoin price is currently 3% lower than its market value 24 hours ago and is now trading at $86,409.24.

Within the last 30 days, the flagship coin has recorded a total % price drawdown of 12% and a Week-to-Date (WTD) increase of 1.9%.

Overall, crypto traders are not optimistic about BTC, as seen in its trading volume, which is now down by 24.63%.

The ETH price has struggled to hit a defined support level in the last few weeks.

Market analysts have been discussing the altcoin’s potential weakness. As of March 5, analyst Ali Martinez noted that Ethereum was approaching critical price levels.

As its value dropped below $2,114, the analyst saw the possibility of the altcoin testing $1,250 in the next few weeks.

However, Ethereum is battling the $2000 support and is currently trading at $2,185.90.

According to market data, the XRP price was $2.36, down 7.31% in the past 24 hours.

Can Crypto Reserve Change Outlook in the Long Term?

The volatility in the market could have been cleared with the Trump’s plan to introduce ADA, XRP, and SOL into the United States strategic reserve.

However, the plan was met with backlash. Most entities do not subscribe to having altcoins in the national treasury.

Brian Armstrong, CEO of Coinbase, thinks it is best to keep the reserve diversification to Bitcoin only.

He noted that this is the “simplest and clear story as successor to gold.”

Furthermore, he suggested a market cap-weighted index of crypto assets instead of a mix of altcoins.

Real Vision CEO Raoul Pal shared the same opinion. He noted that an index of US-based crypto by market cap in addition to BTC and ETH is sufficient to keep the reserve neutral.

Considering how these industry leaders feel about the crypto reserve update, the plan may not see the light of day, a sentiment that is impacting market turbulence.