The volatility caused over $900 million in liquidations on crypto-tracked futures, impacting both longs and shorts (or bets on higher and lower prices.
Coinglass data showed 262,620 traders were liquidated, the total liquidations come in at $968.18 million.
The crypto market had a pause on its rocket rally that began a week ago following the U. S. election, but investors can anticipate a resurgence in demand.
Bitcoin dropped to $85,300 on Tuesday, as seen on Binance data. On Monday, it increased by over 10% to reach a high of $89,623 at midnight.
Bullish sentiment remains strong
- Many investors anticipate Bitcoin will continue to set new records as it approaches $100,000 later this year
- However, with headwinds already visible at the 90K zone, overbought daily studies indicate that traders may be able to recover some of the gains from a robust rally in recent days.
- The market correction will likely be superficial and mark positioning for a push through 90K because the bullish sentiment is still very strong due to the euphoria surrounding Trump’s victory. Ideally, dips should be contained by solid supports in the 86500/84000 zone, maintaining the lower pivot at 80K.
- Bitcoin has increased by over 26%. since election day in November, the first time since March when it hit a new record.
Altcoins see mixed reactions
Following a 33 per cent gain over the previous week, Ether was down 3 per cent on Tuesday. Bitcoin has dominated the digital space, holding a dominant share of just over 60% of the market
Longtime Bitcoin owners have not yet sold below $100,000, according to Bitwise Chief Investment Officer Matt Hougan, even though more investors are looking to get in on the rally. The fact that people have ceased selling is another aspect of this rally.
“Short sellers don’t want to get in the way of a freight train, and long-term owners are no longer willing to part with bitcoin below $100,000,” he wrote in an X post on Monday.
- Asset managers have also accumulated a record volume of Bitcoin ETFs. In anticipation of a crazy price surge, firms such as Bernstein encouraged investors to consider investing in Bitcoin.
- President-elect Donald Trump’s pledges to improve the regulatory climate and even make it more welcoming to cryptocurrency companies, which have long suffered from unclear regulations
- Bitcoin has long been considered a safe asset in Washington, meaning it is exempt from securities laws, however, most crypto assets and startups in the crypto space have been functioning in a dangerous grey area.
- The meme coin Shiba Inu, which was down 4% after rising 57% over the previous week, was among the coins that experienced a halt on Tuesday in the cryptocurrency market.
The crypto market’s record growth signals strength
A Republican sweep could increase the current $3 trillion total crypto market valuation to $10 trillion by 2026, with price targets of $100,000 by the end of this year.
The overall cryptocurrency market increased by 80% this year, from $1.17 trillion in January. to over $3 trillion.
- This indicates that the total market for cryptocurrency assets is bigger than the market capitalizations of Amazon, Alphabet (Google), and Microsoft.
- Crypto is still in its infancy, smaller than Apple and Nvidia in valuation. However, Bitcoin’s market valuation is currently higher than silver, which is $1.73 trillion. Additionally, it surpasses the market capitalizations of Tesla and Facebook’s parent company Meta.
- Traders anticipate short-term pullbacks with the possibility of a leverage washout above $90,000 and project a slower rise from current levels to $100,000.
