The crypto market faces major liquidation while Donald Trump’s inauguration ceremony is nearing. Over $435 million has been liquidated in the last 12 hours. This significant market volatility has raised concerns about market volatility.
The cascading liquidations have mainly impacted traders with highly leveraged positions on major exchanges like Binance, Bybit, and OKEx. According to CoinGlass data, most liquidated positions were longs, which shows bearish sentiment overtaking the market. Traders who had anticipated further price surges were caught off-guard by the downturn, leading to a flurry of closed positions.
BREAKING: $435 million has been liquidated from the cryptocurrency market in the past 12 hours. pic.twitter.com/pOaFXUv2DZ
— Lookonchain (@lookonchain) January 13, 2025
Bitcoin Drops as It Faces Major Liquidation
Technical indicators further underscore the severity of the situation. Bitcoin’s Relative Strength Index (RSI) has dropped below 45, which shows the cryptocurrency may be entering an oversold territory. Potentially attracting buyers looking for a rebound opportunity. Ethereum’s RSI remains around 48.
Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB) bore the brunt of the event, with Bitcoin alone facing over $200 million in liquidations. The rapid sell-off pushed Bitcoin’s price down from $95,096 to $90,920 with a 4.16% drop.
Despite the turbulence, trading activity has surged. Binance reported a 30% spike in 24-hour Bitcoin trading volume, while Ethereum trading volume increased by 25%. This uptick in trading suggests that while many traders are retreating from the market, others view the dip as a chance to accumulate assets at discounted prices.
Market analysts warn that such liquidation events often lead to short-term corrections but can pave the way for a more stabilized market once the dust settles.
Also Read: XRP Flips Resistance to Support, Eyes $4 and $8 Surge
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