After an early plunge, Bitcoin BTC/USD staged a comeback while crypto liquidations shrank rapidly, although analysts see continued uncertainty over the market's next move.
What Happened: Data from Coinglass showed total liquidations collapsed to just $175 million over the last 24 hours, a far cry short from the $652 million over 24 hours on Jan. 3. Bitcoin has accounted for $52 million of that total, while Ethereum ETH/USD bets worth $19 million were liquidated. Among altcoins, Solana SOL/USD has seen just over $10 million wiped out over the last 24 hours.
Why Does It Matter: While the market rebounded after a Matrixport report spooked traders, the depth of any recovery remains unclear. Bitcoin proponent CRG said on X: “After a big liquidation event like we had yday, market usually chops for a while to build momentum back up for the next move. So BTC could simply go nowhere for a few days+. Don't get chopped up.”
Crypto analyst CrediBULL Crypto reminded users: "Told you guys we were due for a massive liquidation!" Meanwhile, liqs from this move were comparable to the move from 3 weeks ago and $BTC failed to breach 40k once again."
Co-founder & CEO of Cryptoquant, Ki Young Ju highlighted traders booking profits after buying Bitcoin at around $16,000 about a year ago, rather than waiting for a potential ETF.
With data from Coinglass indicating a potential local top, traders are treading with caution after Jim Cramer's untimely bullish turn on Bitcoin.
Price Action: Bitcoin was up 3.6% in the past 24 hours to $43,969 at the time of publication. However, trading volume dropped 8.6% over the past day.
Now Read: Bitcoin ETF, Goldman Sachs and BlackRock - What's Going On?
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