Liquidating Nearly $1 Billion in Cryptocurrency as Bitcoin and Altcoins Recover

The data shows that the cryptocurrency market has witnessed significant liquidation in the past day following the recovery of Bitcoin and altcoins. Bitcoin and Altcoin have rebounded after Trump's statement Bitcoin and the rest of the cryptocurrency space ended February with a very pessimistic note as the market experienced a deep price decline, sending BTC down to as low as $78,000. However, in the blink of an eye, digital assets have seen their fortunes reversed in the past day. The driving force behind this recovery momentum is Donald Trump's announcement of the Strategic Cryptocurrency Reserve Fund including Bitcoin, Ethereum (ETH), XRP (XRP), Solana (SOL), and Cardano (ADA). The announcement was made through the official account of President Truth Social. In the first post, Trump only mentioned altcoins XRP, SOL, and ADA, but in the next post, he also confirmed BTC and ETH, saying they will be the "heart of Reserve". Since the US election, Crypto Reserve has been eagerly anticipated by the cryptocurrency community, so it's no surprise that this news could have a strong impact on traders' sentiment.

From the chart, it can be seen that Bitcoin has reached $95,000 in the price surge, but it has witnessed a slight pullback to $92,800. Ethereum also shows a similar pattern, although the pullback from $2,550 to $2,360 is significantly larger than BTC. In general, the top two cryptocurrencies have increased by 8% and 6% respectively in the past 24 hours. Interestingly, XRP, SOL, and ADA, three original currencies, have shown much stronger increases of 17%, 13%, and 48% respectively. The price increase is not limited to this five coins in the Reserve, as other coins in this space have witnessed a certain level of increase. The consequence of all this volatility is that liquidation has increased on derivative platforms. The cryptocurrency derivatives market just witnessed $971 million liquidated According to data from CoinGlass, a total of 971 million dollars in cryptocurrency futures contracts have been liquidated in the past day. 'Liquidated' here refers to the forced closure that any open contract must undergo after accumulating a certain level of loss. Below is the analysis table of numbers related to the latest mass purge event.

As can be seen above, about 558 million dollars of these liquidations are related to short-selling investors, accounting for over 57% of the total. It is understandable that these traders dominate this event, as the market has been rising during this period. However, despite the price increase, about 412 million dollars of the buy orders holders are still liquidated due to the sell-off. Looking at individual tokens, Bitcoin and Ethereum are expected to lead with liquidation values of 353 million dollars and 182 million dollars respectively.