$349M liquidations in 24 hours: Is the crypto market in panic mode?

In the past 24 hours, the crypto market cap slid by 3.22%. Bitcoin [BTC] and Ethereum [ETH] were down 3.89% and 3.63%, respectively. Bitcoin fell to a low of $66.2k but didn’t reach the $65k low made on  the 29th of March.

These price moves were a result of President Donald Trump’s address to the nation. The S&P 500 erased $550 billion from its market cap in under half an hour, reported the Kobeissi Letter.

President Trump’s threats to strike Iran’s power plants and the expectations of “two to three weeks” of further conflict sent oil prices soaring to $107.65 per barrel. Experts have warned that the initial price shock from rising oil rates was just the beginning.

The brunt of this development’s impact will take weeks and months to be felt. This conflict and its aftermath could be what is needed to push Bitcoin toward its final cyclical capitulation.

Crypto market faces increased liquidations

CoinGlass data showed $349.84 million in liquidations across the market in the past 24 hours. Ethereum had the biggest share of liquidations at $90.83 million, with Bitcoin second at $80.89 million in total liquidations.

It was mostly the long-positioned traders who suffered from the president’s address and market-wide fear.

After the 28th of March, the Funding Rate dipped into negative territory once again. It indicated that the perpetuals contract was trading lower than the spot price, signifying heavy bearish sentiment in the short-term.

The recent sell-off came within the long-term bearish trend of Bitcoin. Zooming in on the recent weeks’ price action, the impact was not trend-changing. However, the crucial point remained the $65.6k level, as a 4-hour trading session close below this level would shift the timeframe’s swing structure bearishly.

This is the outcome BTC seemed to be headed toward. The $69k supply zone has firmly rejected the bulls, and the bearish internal structure could lead prices to the $65k local low and the $63.3k southward extension next.

Final Summary

• The crypto market saw another sizeable liquidation event after President Trump’s announcement sent stock markets plummeting.
• The short-term expectations for Bitcoin and crypto remain bearish.