Bitcoin's pullback triggers $420 million in liquidations, market cautious sentiment intensifies
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In the past 24 hours, the cryptocurrency market has experienced significant volatility, with Bitcoin (BTC) price dropping 2.99% to $104,027.71, triggering over $420 million in liquidations, affecting a total of 165,326 traders.
Long traders suffer heavy losses
After the pullback in Bitcoin's price, market liquidations are primarily concentrated among long traders:
Bitcoin liquidation amount: $76.7 million, with long traders losing $54.1 million.
Other cryptocurrency liquidations: $100.98 million, primarily from Ethereum (ETH) and Dogecoin (DOGE).
Ethereum: Lost $55.54 million
Dogecoin: Lost $13.16 million
XRP: Lost $21.91 million
The previous strong rally of Bitcoin breaking above $108,000 may have led long traders to make overly optimistic bets, while this price pullback has clearly shattered their expectations.
Liquidation trends and market volatility
Historical data shows that each time Bitcoin hits a new high, the market usually experiences large-scale liquidations. For example:
A few days ago, when the BTC price reached $106,000, the market liquidated $320 million within 24 hours, with short positions suffering the most.
After the current price adjustment, short traders also faced about $22 million in liquidations.
Possible reasons behind Bitcoin's decline
Analysts believe this pullback may be related to the following factors:
Uncertainty in Federal Reserve policy
The market expects the Federal Reserve to cut rates by 25 basis points, but the possibility of continued tightening policies makes investors cautious.
Mark Cuban pointed out that the Federal Reserve may maintain limited rate cuts until 2025.
Macroeconomic and political factors
Arthur Hayes predicts that Donald Trump's presidential inauguration in 2025 may have a significant impact on the crypto market, increasing market uncertainty.
Market outlook and short-term rebound
Despite the price briefly dipping below $104,000, Bitcoin has shown some rebound momentum, currently approaching $105,000. The market remains cautious about future trends, particularly in the context of Federal Reserve policy and global economic changes.
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