The cryptocurrency market faced intense volatility with $534 million liquidated, with the turmoil largely driven by volatile prices for XRP and Bitcoin, both of which played a major role in the overall market chaos.
The turmoil in the crypto market, exacerbated by South Korea’s declaration of emergency martial law, has led to unprecedented instability and trading disruptions on local exchanges. Bitcoin’s price plummeted more than 30% on UPbit, hitting $66,000 at one point before rebounding to over $94,500, creating a significant arbitrage spread against global markets.
Geopolitical factors aside, Bitcoin’s technical analysis shows that the asset is currently in a consolidation phase, trading around $94,500 and showing signs of weakness amid its bullish momentum. However, the mid- to long-term outlook remains positive, with moving averages arranged and crossing upward.
The overall market landscape shows a complex interaction of factors leading to the significant volatility and liquidation currently being observed. Total cryptocurrency liquidations increased 43% in the past 24 hours to $534 million, with more than $352 million in long positions and $181 million in short positions wiped out, according to cryptocurrency data site CoinMarketCap.
Binance leads exchanges with $222 million in daily liquidations, 63% of which are long positions. OKX and Bybit also recorded significant liquidations, at $134 million and $124 million respectively. Nonetheless, some cryptocurrencies such as XRP, HBAR, and IOTA have shown resilience during periods of high liquidations, pushing prices up an average of 22%.
The increase in liquidations comes as the cryptocurrency market trades sideways in a $3.46 trillion range, according to CoinMarketCap. Investors have purchased more than $1.2 trillion in cryptocurrencies in the past month, with daily cryptocurrency trading volume rising 38% to $375 billion.
News that the U.S. government may sell its Bitcoin holdings has also sparked mixed reactions, with some speculating it could be an attempt to hinder the incoming Trump administration, while others are optimistic about protecting the assets. Despite these developments, the cryptocurrency market remains in a period of high volatility and liquidation, making traders nervous as they navigate the unpredictability of the cryptocurrency market.
"The cryptocurrency market fluctuated violently, with liquidation reaching US$534 million, with XRP and Bitcoin becoming the main drivers." This article was first published on (Block Guest).
