Crypto Market Sees $854 Million in Liquidations Amid Downturn
The crypto market has experienced a downturn, with total liquidations reaching $854 million. This sell-off follows a bullish trend after Donald Trump's election victory, which previously drove Bitcoin to a peak of $109,000 on January 20. The market correction began when Trump did not address cryptocurrency in his inauguration speech.
Key Liquidation Details
- Total long position liquidations amounted to $794 million, while short sellers faced $59 million in losses.
- Bitcoin accounted for over $259 million in liquidations, followed by Ethereum with more than $110 million and XRP with $33.93 million.
- Other cryptocurrencies contributed $179.72 million to the total.
- The largest liquidation occurred on HTX, with a BTC-USDT order worth $98.46 million.
Trump's Crypto Working Group
Despite initial silence on crypto, Trump has established a working group to assess regulations and promote digital asset innovation. An executive order mandates this group to review current regulations within 180 days, chaired by David Sacks, Trump's Special Advisor for AI and Crypto.
Key agencies like the Federal Reserve and FDIC were excluded from this group, despite their previous involvement in restricting crypto firms’ banking access.
Market Outlook
Investors are monitoring the group's findings closely. While the administration appears pro-crypto, regulatory clarity remains uncertain. Analysts suggest the recent pullback may be a natural correction after Bitcoin's surge above $100,000. Future market behavior will depend on Trump's policies and ongoing regulatory uncertainties.