The ongoing bullish rally in the digital currency sector has suffered a slight setback as the leading asset, Bitcoin, lost critical support. After soaring to a new all-time high (ATH) and peaking at $111,970.17, Bitcoin has dropped below $109,000, leading to severe liquidation in an unusual market bloodbath.
Bitcoin's losses trigger widespread liquidations
According to CoinGlass data, a total of $544.62 million liquidations hit the crypto market in the last 24 hours. This has resulted in long-term traders betting on a continued bullish rally, recording losses of $402.25 million.
Bitcoin saw a total of $139.44 million wiped out, with long position traders losing $113.62 million as against the $25.82 million registered by short position traders. The liquidation has impacted market sentiment as trading volume plummeted by a massive 32.19% to $63.95 billion.
As of press time, Bitcoin has lost over $3,000 and is trading at $108,426, representing a 2.63% decline within the time under consideration.
The liquidation among altcoins hit Ethereum (ETH) hardest. The leading altcoin also witnessed a liquidation imbalance, as a total of $137.67 million was wiped out, with long-position traders accounting for $100.74 million.
Similarly, XRP, which has been aiming for the $3 level, registered a massive $10.47 million in long-position liquidation as most investors were betting on increased growth. Short traders lost $910,000, for a total of $11.38 million wiped out from the coin.
Golden cross offers ray of hope
Meanwhile, XRP's trading volume declined sharply by $300 million in the last 24 hours. This loss suggests that actual transactional usage on the platform has plummeted significantly due to reduced institutional inflows or a decrease in user activity.
Market observers are watching Bitcoin to see if the asset could lead the crypto market recovery and continue on its upward trajectory. Notably, Bitcoin’s mini-golden cross recorded recently offers hope of a potential price rebound.
