In the past 24 hours, more than 195,184 traders were liquidated, bringing the total number of liquidations from the crypto market to around $672.38 million.
The most significant single liquidation, worth approximately $10 million, occurred on the BitMEX exchange. The massive dip in Bitcoin (BTC) price likely triggered the liquidations as Trump tariff concerns returned.
Current Liquidation Outlook
In the early hours of March 3, Bitcoin’s price dropped to around $88,000, raising concerns amongst investors and other digital asset market traders.
At this time, the flagship cryptocurrency had dropped further and was trading at $86,846.88. This current BTC price level corresponds to a 6.93% dip within 24 hours at the time of writing.
Therefore, it is not surprising that Bitcoin was leading the crypto liquidations as of writing. According to Coinglass data, the coin has recorded 24-hour liquidations valued at $258.70 million.
Over 80% of this value was liquidated from long traders who must have placed their bets on a potential BTC price increase. Short Bitcoin traders only recorded about $44.36 million in losses within the same time frame.
Bitcoin liquidations were followed closely by Ethereum, which had $148 million worth of liquidations.
Once again, long traders suffered the most, losing as much as $114.52 million, while short traders lost only $33.68 million.
The massive liquidations also affected Solana (SOL), Dogecoin (DOGE), Ripple’s XRP, LTC, and other cryptocurrencies.
Bitcoin Price and Ethereum Trend
During the past week, Bitcoin experienced a bearish market trend that caused it to lose most of the gains it recorded in November 2024.
Precisely, Bitcoin price fell as low as $78,197 on February 28, but printed a massive recovery during the weekend.
While the coin was oversold at its recent weekly low, the recovery suggested a significant accumulation.
It is worth noting that blockchain analytics platform CryptoQuant noticed that exchange flows had reached their lowest level in the last six weeks.
The market is also witnessing weak whale activity. This whale action is usually recorded when these entities expect more downside in the near term.
Analysts believe the coin stands a better chance at a bullish outcome this week, however, the current market outlook suggests otherwise.
Ethereum has also experienced a significant price dip, now trading at $2,124.95. This price level follows a 15.15% slump in its market value in a 24-hour period.
At this rate, it is unclear how the altcoin will achieve the predictions issued by analysts before now. While some experts say the crypto might hit $7,000 soon, others say it is headed for $10,000.
The dominance of Ethereum as a decentralized finance hub remains the catalyst for this prediction.
Trump Tariff and Crypto Volatility Trigger
President Donald Trump’s administration has brought many changes to the crypto industry in the United States.
In addition to the executive orders favoring cryptocurrencies, his latest move was to list certain assets as part of the US strategic reserve.
Meanwhile, ETH, which is currently facing a decline, is one such asset for the crypto strategic reserve. Ripple’s XRP, ADA, and SOL were also listed alongside Ethereum as the US Government appears to favor a broad-spectrum of cryptocurrencies in the reserve.
This update, shared on March 2, fueled a market rally, one that has proven unsustainable.
