Amidst market volatility, cryptocurrency liquidations surpassed $290 million in the past day, with $152 million attributed to Bitcoin liquidations. Bitcoin, currently hovering around $64,000, accounted for $108 million in liquidations, with longs and shorts contributing roughly equally. The wider cryptocurrency market witnessed a 4.46% gain, with analysts suggesting Bitcoin's post-halving trajectory hinges on geopolitical stability, institutional interest, and macro factors.
Crypto Liquidations Surge Amid Market Volatility, Bitcoin Faces Pressure Amid Halving Countdown
Over the past 24 hours, the cryptocurrency market has experienced significant turbulence, resulting in liquidations exceeding $290 million. Of this total, long positions accounted for approximately $154 million. Bitcoin, the preeminent digital asset, witnessed liquidations soaring beyond $108 million as its value briefly dipped below $60,000 before recovering. Currently, Bitcoin faces resistance in maintaining its position above $64,000.
According to data from Coinglass, Bitcoin liquidations were nearly evenly distributed between long and short positions, amounting to $54 million and $53 million, respectively. Despite the recent market volatility, Bitcoin has registered a 5.3% increase within the last 24 hours, trading at $64,739 at the time of writing. The GM 30 Index, which encompasses the top 30 cryptocurrencies, has also experienced an upward trend, rising by 4.46% to 129.97.
Industry experts anticipate Bitcoin's impending halving event, where the block reward granted to miners will be halved, to have a significant impact on its performance. According to the halving countdown maintained by The Block, this highly anticipated event is less than 100 blocks away. Analysts from 21Shares posit that Bitcoin may continue to exhibit lateral movement until geopolitical uncertainties, including conflicts in the Middle East and concerns regarding the control of oil transportation routes, subside.
Assuming the stabilization of these geopolitical concerns, analysts anticipate Bitcoin to resume its upward trajectory post-halving. This potential rise is expected to be supported by escalating institutional interest in digital assets, particularly driven by the introduction of U.S. spot ETFs and the recent approval of Hong Kong ETFs.
Coinbase analyst David Han underscores the profound influence of macroeconomic factors, particularly heightened geopolitical tensions, on short-term crypto activity. In this week's Coinbase Monthly Outlook report, Han observes, "The recent elevated correlation of altcoins against bitcoin underlines this, indicating bitcoin's anchor role in the space even as it firms its position as a macro asset."
As the market continues to navigate the challenges of volatility, investors are closely monitoring the ongoing developments and their potential impact on the broader cryptocurrency landscape.
