The cryptocurrency market has experienced heightened volatility following President Donald Trump’s announcement regarding creating strategic reserves for digital assets.
This volatility has led to accelerated liquidations across exchanges. For instance, on Monday, March 3, the market saw $120 million in liquidations within an hour, coinciding with a brief drop in Bitcoin (BTC) below the $90,000 mark.
On a broader scale, over the past 24 hours, total liquidations surged to nearly $1 billion, according to Coinglass data
The brutal wave of liquidations affected 203,956 traders, with the total value reaching $893.10 million. The largest single liquidation order, amounting to $15.49 million, occurred on Binance in the BTC/USDT pair.
This suggests that Bitcoin’s recent price swings have caught overleveraged traders off guard, triggering mass liquidations across exchanges.
Crypto loses $3 trillion market cap
Meanwhile, the total cryptocurrency market capitalization has dropped below $3 trillion. As of press time, the value stood at $2.96 trillion, reflecting a $130 billion decline in the past 24 hours.
Bitcoin has been at the center of this turmoil, struggling to maintain its price above $90,000 support level. At the time of reporting, the flagship digital asset was trading at $90,459, up 1.6% on the daily chart.
Market sentiment initially turned bullish, with most assets witnessing a significant uptick in capital inflows after President Trump named five cryptocurrencies—Bitcoin, Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA)—as part of the United States’ strategic reserves.
However, the momentum was short-lived, as many investors remained skeptical about the plan’s implications, especially since Trump’s initial promise focused solely on Bitcoin.
Bitcoin rally signalling market crash
On the other hand, with Bitcoin hitting a record high of $108,000, Bloomberg Intelligence Senior Commodity Strategist Mike McGlone has warned that this six-figure milestone could signal trouble ahead.
McGlone suggested that Bitcoin’s rally, combined with the emergence of new digital assets and fresh capital inflows, might resemble the unchecked exuberance of the 2000 Dot-com bubble, raising concerns about a potential crash.
According to the expert, Bitcoin’s surge past $100,000 “could have rung the bell for risk assets,” hinting at a possible market top.
With the strategic reserve failing to spark a sustained rally, the market remains on edge, with bulls and bears tussling for control. Notably, a drop below $90,000 remains a key level to watch.
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Source: https://finbold.com/crypto-market-wipes-out-120-million-in-an-hour/