Starting the long-awaited U.S. president’s inauguration day, the crypto market turned red. The world’s leading crypto, bitcoin (BTC), dropped by 6% from $106,400 to $99,550. Other high-value and trending cryptocurrencies, including Ethereum (ETH), Solana (SOL), Trump, and others, followed in the same footsteps. Consequently, many traders with long leverage positions were knocked out of the market and liquidated their funds.
According to Coinglass, an on-chain liquidations tracker, about $1.20 billion has been lost from the crypto market within 24 hours. Over 75% of this was lost in long positions, with $934 million coming from long positions and just $264 from short positions.
$1.2 Billion Down the Drain
About four cryptos on the green side over the weekend were at the forefront of Monday’s liquidation splash. Traders lost about $208 million to ETH, and BTC took over $206 million from several traders.
Following its sharp jump to a new all-time high of $295, SOL dropped to $230, stripping off over $117 million from investors expecting further uptrend. Similarly, the incoming president’s token, Trump, took a turn after reaching a massive $70 billion market capitalization within 36 hours after launch. Therefore, many bullish traders lost about $137 million on the token.
Over 400,000 traders were victims of the sharp market drop. The most significant single liquidation was $15.24 million from a long position on the BTCUSDT pair on the Binance exchange.
Price Rebounds
According to recent analyses by expert traders and predictions from big, long-term crypto investors, the price drop is temporary. The community looks forward to a price rebound after Donald Trump, the pro-crypto 47th U.S. President, steps in. As of this writing, BTC has rebounded to over $108,000.
Evident in his reappointment of a crypto-friendly chairman to oversee the country’s Securities and Exchange Commission (SEC), Trump wants to live up to his promise of easing the regulations and burdens on U.S-based crypto firms and traders.
Meanwhile, his son, Eric Trump, projects that BTC will be worth $1 million in a few years, citing its universal recognition as a driving factor.
