The cryptocurrency market experienced a turbulent 24 hours, marked by significant liquidations and broad declines across major altcoins. Traders faced heightened volatility, with bitcoin showing relative resilience compared to other major altcoins, such as solana and cardano.
Over 386,000 traders were liquidated in the past day, resulting in total cryptocurrency liquidations of approximately $1.28 billion, according to Coinglass data. Long positions accounted for $816 million of the liquidations, while short liquidations amounted to $307 million. This indicates a strong shift in market sentiment as traders adjusted to rapid price movements across digital assets.
Bitcoin, which recently touched a fresh high of $109,000 on Sunday, was trading around $103,500 as of press time, according to The Block's Price Page. Its price saw a modest 2.2% decline over the past day, highlighting its relatively stable performance amid broader market weakness.
Altcoins bore the brunt of the recent sell-off, with leading assets experiencing significant declines as traders exhibited increased risk aversion and shifted capital toward stablecoins. Solana dropped over 9% in the past day and cardano declined more than 5% over the same period
FXTM Senior Market Analyst Lukman Otunuga commented on the market’s volatility, stating, "bitcoin’s sensitivity to U.S. economic data and Fed rate expectations, traders should brace for heightened volatility in the days ahead." Meanwhile, analysts at QCP Capital noted signs of caution among traders. “While funding rates on derivatives platforms like Deribit remain elevated, suggesting underlying optimism, the market appears to be consolidating after its recent rally.”
Amid the market’s turbulence, speculation about a potential U.S. Bitcoin Strategic Reserve (SBR) continues. According to Polymarket, the probability of President Trump signing an executive order to establish an SBR within his first 100 days in office stands at 38%.
The concept of an SBR involves the U.S. government acquiring and holding bitcoin as a strategic asset, similar to gold reserves. However, such a policy would require extensive planning, regulatory alignment, and collaboration with the Federal Reserve.
“Establishing a bitcoin strategic reserve within the first 100 days remains largely speculative, "Bitget CEO Gracy Chen told The Block. "Implementing such a disruptive policy requires thorough planning, regulatory support, and alignment with the Federal Reserve's framework."
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
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