Bitcoin (BTC) Briefly Tanks to $80K, Leaving Over $600 Million in Liquidations
Bitcoin’s recent price fluctuations have drawn attention, particularly over the weekend when it stabilized around $86,000, displaying minimal volatility. This calm was short-lived as the bears regained dominance, driving the price down to as low as $80,000 within hours. The ramifications of this downward trend have been significant for over 220,000 traders who were over-leveraged during the market’s swing. Data from CoinGlass indicates that liquidations over the last 24 hours totaled approximately $620 million.
Bitcoin (BTC) accounted for a substantial portion of these liquidations, approximately $240 million. Other cryptocurrencies also faced severe downturns; Ethereum (ETH) traders saw about $108 million in liquidations, while Ripple (XRP) witnessed approximately $30 million. Notably, the most significant single liquidation occurred on the Binance platform involving the BTC/USDT trading pair, resulting in a staggering loss of $32.09 million for one investor.
Despite a slight rebound to around $82,500, Bitcoin remains significantly lower on both weekly and monthly scales, and many market watchers are taken aback by this negative performance given recent positive news from the U.S. government. In a notable move, President Donald Trump signed an executive order to establish a strategic Bitcoin reserve and a Digital Asset Stockpile. This plan entails maintaining existing seized cryptocurrencies without directly purchasing more, which many hoped would stabilize or even boost Bitcoin’s value.
Market analysts speculate that a “sell the news” phenomenon could explain the bearish trend as traders cash in after the announcement rather than hold for potential future gains.
Looking ahead, the upcoming week is anticipated to inject more volatility into the market. The U.S. Bureau of Labor Statistics is scheduled to release the Consumer Price Index (CPI) data for February on March 12. This report is critical, as the Federal Reserve uses inflation data to guide interest rate decisions. Historically, such adjustments have led to notable price fluctuations in Bitcoin and other cryptocurrencies.
As the market navigates these turbulent waters, investors remain keenly attuned to external economic indicators and their potential impact on the cryptocurrency landscape.
