The cryptocurrency market experienced almost $1 billion in liquidity in just 24 hours due to the turbulent development. What is the main motivation? Bitcoin A significant price drop below the $100,000 threshold, a figure that previously seemed unattainable to many individuals.
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The significant wave of liquidity triggered a significant drop in major altcoins, reflecting fears of a volatile market that had been warned about for months.
Widespread liquidity in the entire Bitcoin market
Many buyers were not prepared for the price of Bitcoin to drop so quickly. Long accounts lost the most when Bitcoin fell, and they made up a large portion of all liquidity.
According to the , about 406,000 traders sold about $1.2 billion in assets over the past day, with $920 million in long sales and $260 million in short sales. CoinGlass.
Many traders were thrown off guard by the fall in the price of Bitcoin. Long holdings suffered the most due to Bitcoin’s plunge, which greatly increased overall liquidity. Others were not immune cryptocurrencies Including Ether, Cardano, and Dogecoin. They suffered a clear loss as they tracked Bitcoin’s decline.
There are crypto top signs everywhere.
There are still some good charts around but regardless, I think we’re at a stage in the cycle where it would be wise to take some chips off the table.
— Bluntz (@bluntz_capital) January 19, 2025
Bearish trend affects Altcoins
Altcoins that have shown promise in the past have also fallen in price. For example, the uncertainty caused the price of XRP to plummet, which surprised many buyers. Traders were expecting momentum to pick up, but this sudden drop has them wondering about market stability and the start of a long-term recession.
On X, cryptocurrency trader “Bluntz” said “top signs everywhere.”
“I think we’re at a stage in the cycle where it would be prudent to take some chips off the table,” he added.
A change in market sentiment due to a fall in price
The change in market mindset is very worrying. Panic selling caused by the risk of additional losses made the market uncertain.
The market correction of 2021, when investors quickly liquidated their holdings when sentiment suddenly soured, was a reminder of this massive collapse. Analysts now advise investors to be cautious and keep a close eye on market indicators before placing their bets.
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Bitcoin hits new ATH
Meanwhile, ahead of Republican Donald Trump’s plan opening Later in the day, Bitcoin (BTC) a Record high above $109,000 during Asian trading hours on Monday. On Binance, the largest cryptocurrency reached $109,335.
In a speech on Sunday, Trump cited advances in the broader U.S. stock market as well as the historical performance of assets.
Featured image from WIRED, chart from TradingView
