Liquidations on the crypto market reach $1 billion

In the past 24 hours, over $1 billion has been liquidated in the cryptocurrency market, a consequence of significant asset growth over the last 30 days. Traders’ optimism created an illusion of stability. As Swyftx analyst Pav Hundal noted: «Over the past month, the market has been optimistic but unprepared for bad news, leading to a chaotic sell-off».

Despite the liquidations and short-term decline, analysts do not see this as the start of a long-term downturn. Hundal, for instance, considers this merely a temporary «alarm», with the market potentially recovering ahead of the «Santa rally».

Optimistic forecasts

The cryptocurrency market is traditionally characterized by high volatility, and the current Bitcoin pullbacks are seen by experts as a typical phenomenon for a bullish trend that may continue in the coming months. A key factor for the market will be Donald Trump’s inauguration in January 2025. Investors are closely monitoring his potential actions, including plans to create a strategic Bitcoin reserve in the US, which could significantly impact the future development of the crypto market.

Why stay optimistic?

Despite current fluctuations, analysts do not view the downturn as a sign of a long-term bear trend. Crypto analyst Caleb Franzen noted that previous bull rallies were also accompanied by pullbacks, followed by growth. «Buckle up, buttercup», he added, hinting at potential new highs in the future.

What’s next?

In the near term, the market is likely to remain influenced by short-term fluctuations and expectations tied to the US political situation. As Hundal pointed out, with the emergence of a new administration, the cryptocurrency market could face additional volatility as participants reassess their strategies in response to new government initiatives.

Investors will likely monitor developments closely ahead of Trump’s inauguration, which could become a key factor in determining the direction of the crypto market in the coming months.