Traders liquidated $1.7 billion in the cryptocurrency market on Monday. Thay day, the price of Bitcoin fell rapidly to an intra-day low of $94,150. As traders get ready for the important U.S. economic data, Bitcoin stayed below $97,000 on Tuesday. Coinglass data indicated that 583,530 traders were liquidated on the last day.
Data from Coinglass shows that 583,530 traders faced liquidations in the past 24 hours. Long positions accounted for most of the losses, totaling $1.552 billion, while $154.59 million came from short positions.
The market reaction was swift. Some traders labeled the liquidations a “healthy reset.” The funding rates across altcoins normalized as overleveraged positions were closed. This may stabilize future price movements.
Analysts also track future statistics in the U.S., such as the Producer Price Index, weekly jobless claims, and Consumer Price Index. These data points could contribute to a potential surge or drop in the price of Bitcoin. This, in turn, may affect overall market sentiment.
Despite the chaos, Bitcoin was down 3% since the start of the day, trading at $96,682 on Tuesday. The liquidation event could reduce speculative pressure and make way for more sustainable growth, market analysts said.
Caution remains a common theme among traders, with popular voices on platforms like X urging restraint during this volatile period. As the market adjusts, the focus shifts to whether Bitcoin can recover its recent losses or face further declines.
