588 million USD cryptocurrency liquidations, market in panic: What triggered this round of bloodbath?
Yesterday, the cryptocurrency market experienced a plunge, with liquidations amounting to as high as 588 million USD within just 24 hours, triggering panic in the market. This "bloodbath" is not only a result of the market's emotional fluctuations following the Federal Reserve's interest rate cuts but also further stimulated by geopolitical tensions.
The truth behind the plunge: Liquidations trigger a chain reaction
In the past day, XRP suffered significant losses, with daily liquidations reaching 69 million USD, and its price falling from a yearly high of 2.82 USD to 2.35 USD. Bitcoin dropped below 96,000 USD, with liquidation losses of 60 million USD; Ethereum evaporated 58 million USD in long positions, and altcoins like Avalanche and Pepe plummeted by 16%.
Data from Santiment shows that following the Federal Reserve's interest rate cuts, the market is in panic over predictions of fewer rate cuts than expected in 2025, causing investors to switch from "extreme greed" to "fear" in an instant, leading to a wave of sell-offs.
Bad news piled on, market worsened
The global situation is also exacerbating the issue. Israel's airstrikes on Iranian-backed groups in Yemen have further intensified the tense atmosphere, spreading risk-averse sentiment. Additionally, Arthur Hayes warned that the market could face sharper declines before Trump's inauguration in January 2025, as regulatory uncertainties will weigh on the market.
A few winners amidst the chaos: ENA and MOVE rise against the trend
While most crypto assets are in a downward spiral, Ethena (ENA) and Movement (MOVE) have risen against the trend, recording increases of 11.66% and 11.48%, respectively. ENA attracted market attention due to new features, while MOVE became one of the few winners thanks to strong community support.
Future outlook: Opportunities after the decline?
Although the market has undergone massive liquidations, many analysts believe that this round of adjustments provides new buying opportunities for long-term investors. 2025 is expected to be a strong comeback year for Bitcoin, and the upcoming cryptocurrency ETF might inject new momentum into the market.
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