Bitcoin & Altcoins Bounce Back, Liquidations Near $1 Billion
Data reveals significant cryptocurrency market liquidations in the previous day after Bitcoin and altcoins recovered.
Bitcoin and Altcoins Sprung Back Following Trump's Announcement
BTC fell to $78,000 in February, capping a gloomy month for Bitcoin and the cryptocurrency industry. Over the previous day, digital assets' destiny changed quickly.
Trump's declaration of a Crypto Strategic Reserve of Bitcoin, Ethereum, XRP, Solana, and Cardano sparked the rebound.
It was announced on the president's Truth Social account. Trump first named XRP, SOL, and ADA, but in a follow-up article, he reaffirmed BTC and ETH as “the heart of the Reserve.”
Cryptocurrency traders have been anticipating the Crypto Reserve since the US elections, so it's not surprise that the announcement has had a major impact.
The data shows Bitcoin near $95,000 during the rally, but value has now dropped to $92,800. Ethereum has followed a similar path, although its retrace from $2,550 to $2,360 was bigger than BTC's.
In the previous 24 hours, the top two cryptocurrencies rose 8% and 6%. XRP, SOL, and ADA, the three currencies first released, have rallied 17%, 13%, and 48%, respectively.
Besides these five Reserve currencies, other coins have shown upward momentum. Due to volatility, derivatives platforms have seen more liquidations.
Crypto Derivatives Market Liquidations Hit $971 Million
In the last day, CoinGlass reported $971 million in bitcoin futures contracts liquidated. Liquidation is the forced closing of an open contract following sufficiently large losses.
The following table lays down the latest mass liquidation event's numbers.
Over 57% of these liquidations involved short investors, totaling $558 million. Since the market has risen throughout this timeframe, these traders should make up for most of the event. Despite positive movement, the downturn liquidated $412 million in long positions.