The cryptocurrency market recently experienced significant turbulence, with liquidations totaling $863.08 million within a 24-hour period. This upheaval coincided with Bitcoin's dramatic surge beyond the $94,000 mark, triggering widespread activity among traders.
Key Highlights:
Massive Liquidations:Approximately 191,903 traders faced liquidations, amounting to $863.08 million.Short positions bore the brunt, with $547.17 million liquidated, while long positions accounted for $298.66 million.Bitcoin's Role:Bitcoin led the liquidation tally with $241.84 million in short positions and $73.30 million in long positions.The largest single liquidation involved $15.49 million in BTC.Altcoin Impact:Ethereum: $86.24 million (shorts), $73.98 million (longs).XRP: $44.21 million (shorts), $31.92 million (longs).Cardano: $67.61 million in total liquidations.Solana: $62.48 million in total liquidations.
Catalyst for Market Movement:
The market's volatility was largely influenced by former President Donald Trump's announcement of a U.S. Crypto Reserve. He expressed favorable views toward cryptocurrencies like Bitcoin, Ethereum, XRP, Solana, and Cardano, marking a significant shift from previous administrative policies. This endorsement ignited a market-wide rally, reversing a prior downtrend.
Bitcoin's Surge and CME Gap Concerns:
Price Spike:Bitcoin's value soared to a peak of $94,598, creating a nearly $10,000 daily candle.It later stabilized around $91,706.CME Gap Implications:This rapid ascent resulted in the largest CME gap in Bitcoin's history, raising concerns about potential price corrections, as such gaps often get filled.
Altcoin Performance:
Cardano (ADA): Surged by 60.3%.XRP: Increased by 34.7%.Solana (SOL): Rose by 25.5%.Ethereum (ETH): Climbed by 13.1%.
These movements led to a decrease in Bitcoin's market dominance from 55.4% to below 50%.
Upcoming Economic Events to Watch:
March 6: U.S. Jobless Claims Report.March 7: U.S. Jobs Report and Federal Reserve Chair Jerome Powell's speech.
These events could introduce further volatility to the crypto market. Traders are advised to exercise caution, implement robust risk management strategies, and stay informed about economic developments that may influence market dynamics.
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📢Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.