Crypto Liquidation Hits $616 Million, Is Massive Selloff Over?

Digital asset prices are gradually recovering after a week of bearish sentiment, although crypto liquidations persist. Prices continue to consolidate or decline.

Over the past 24 hours, $616.40 million in liquidations were observed, affecting 192,960 traders. Coinglass data reveals HTX (formerly Huobi) experienced the largest single liquidation order, at $60 million.

Current Crypto Liquidation Outlook

Bitcoin (BTC) saw the most significant losses, with over $251 million liquidated. Despite a 4.96% increase in the last 24 hours, reaching $83,098.07, this suggests waning investor confidence. Long traders suffered $95.7 million in losses, while short traders lost $155 million in BTC.

Ethereum (ETH) long traders experienced $79.87 million in liquidations, while short traders lost $45.24 million, totaling $125.11 million in ETH liquidations. Other notable liquidations include XRP ($23.76 million), Solana (SOL) ($25.16 million), Dogecoin (DOGE) ($15.84 million), and Cardano (ADA) ($7.7 million).

Bitcoin and Altcoin Performance

Bitcoin's trading volume is declining (down 1.52% to $56.1 billion), indicating reduced investor engagement. Despite this and a price dip below $80,000, the market is showing signs of recovery from recent volatility. The price fall to $76,811 and subsequent rebound to $79,500 represents a four-month low. Bitcoin ETFs also experienced significant outflows.

Ethereum's price has fallen sharply; a 9% drop on March 11th to $1,888 intensified existing sell-offs. This represents approximately 30% loss over the past 30 days and 50% over the last three months. Analyst Ali Martinez warns of a potential further drop to $1,250 if selling pressure continues.

Key Trigger for Rebound: The Bitcoin Reserve Bill

Positive developments could fuel a recovery. Proposals to include Bitcoin in strategic reserves, such as the Texas Senate's proposal to allocate public funds to Bitcoin and accept it for taxes, fees, and donations, could significantly impact Bitcoin's price if passed by the House. Similar initiatives in other regions could also contribute to a price rally.