Crypto Market Liquidations Surge to $477 Million Amid Bitcoin Rejection

Bitcoin price rejection at $105,884 triggered $477 million in crypto liquidations, with $86.82 million from Bitcoin alone. Altcoins like Solana and Ethereum also faced losses, fueling market volatility.

The cryptocurrency market faced significant turbulence over the past 24 hours, recording liquidations worth $477 million as Bitcoin (BTC) failed to sustain its climb toward its all-time high of $108,268.45. BTC dropped after peaking at $105,884.23, and this downward trend impacted major altcoins, triggering widespread liquidations.

Bitcoin Leads Liquidation Totals

Data from CoinGlass revealed that Bitcoin accounted for $86.82 million in liquidations, with $55.11 million of short positions cleared compared to $35.71 million in longs. This indicates traders were betting against BTC’s price retracement, only to face losses as volatility prevailed.

Solana (SOL) stood out among altcoins as it reached a new ATH of $268.74 before experiencing a sharp correction. The asset saw $30.97 million in liquidations, with $19.08 million in shorts and $11.89 million in longs.

Ethereum (ETH), XRP, and Dogecoin (DOGE) recorded significant liquidations, primarily affecting long traders. ETH faced $76.28 million in liquidations, with $57.16 million from longs. XRP and DOGE saw $25.96 million and $32.73 million, respectively, with longs taking the brunt of the losses.

Market Dynamics and External Factors

Analysts have pointed to external factors influencing market behavior. The spike in the 10-year U.S. Treasury yield has historically exerted downward pressure on Bitcoin prices due to their inverse correlation.

Additionally, the increasing correlation between digital assets and traditional equities, particularly the NASDAQ, is contributing to Bitcoin’s price volatility. Equity selloffs often cascade into the crypto market, intensifying fluctuations.

Profit-taking among Bitcoin short traders added to the wave of liquidations, reflecting the uncertainty that currently grips the market.

Institutional Interest and Trump’s Influence

The upcoming inauguration of President-elect Donald Trump has generated optimism in the crypto community, with expectations of pro-crypto policies driving institutional interest. Speculations include the establishment of a U.S. Strategic Bitcoin Reserve, which could fuel further adoption and price appreciation.

Global institutional players are also expanding their crypto offerings. Swiss financial institution PostFinance AG recently introduced Ethereum staking as part of its crypto portfolio, signaling growing institutional confidence in digital assets.

Outlook: A Path to Recovery?

Despite recent setbacks, market sentiment suggests a potential rebound for Bitcoin and other cryptocurrencies. Positive momentum from institutional investments and policy changes under the new U.S. administration could provide the necessary support for a price recovery.

As the crypto market adapts to shifting dynamics, traders and investors remain cautiously optimistic about Bitcoin’s ability to regain its upward trajectory and lead the market toward new highs.

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