A Wave of Liquidation : Crypto Experiences High Volatility
The cryptocurrency market has seen increased volatility in the last 24 hours, leading to significant liquidations. The total crypto market capitalization dropped by 2% to stabilize around $2.68 trillion on Thursday, April 3, during the Middle East financial markets trading session.
As a result, over $490 million have been liquidated in the last 24 hours, involving more than 160,000 traders, mainly long traders. The largest liquidation in the past 24 hours occurred on the Binance platform, with an ETH/USDT position of around $12 million.
Trade Tensions and Inflation Fears Drive Markets Down
On Wednesday, U.S. President Donald Trump concluded the “Make America Wealthy Again” event with an average increase of 10% in reciprocal tariffs. Among the most affected by these new reciprocal tariffs are European countries and nations associated with the BRICS movement, led by China and South Africa.
Following the conclusion of the “Make America Wealthy Again” event, markets experienced losses. The Nasdaq dropped by over 5% after the event before eventually bouncing back.
As the White House released a full list of tariffs on X, futures contracts plummeted with a decline in the S&P 500 index opening in correction territory.
What Does This Mean for Crypto : Technical Analysis of Bitcoin
While the Trump administration is collecting at least $600 billion annually through these new tariffs, experts anticipate approximately 5% inflation.
The widespread adoption of crypto assets by institutional investors and retail traders has significantly increased the correlation of digital assets with the stock market. In the past 24 hours, following the U.S. announcement of reciprocal tariffs, S&P 500 index futures wiped out approximately $2 trillion in market capitalization in just 15 minutes.
Consequently, the cryptocurrency market was dragged into a downtrend due to this wave of massive sell-offs. As GCR stated, “liquidations are a forced transfer of wealth from traders in need of leverage to wealthy spot buyers.” These phenomena are often followed by strong upward rebounds.
In recent days, the price of Bitcoin (BTC) led the rest of the altcoin market to form an ascending triangle pattern on the four-hour chart. While the price of Bitcoin was rejected above $87,000 in recent days, a cryptocurrency market correction was inevitable, led by Ethereum (ETH).
At the time of writing, BTC seems to be holding above its demand zone at $82,000 and is currently trading at $83,678. BTC must hold above the $82,000 zone; otherwise, it could range between $79,000 and $81,600. A drop below $79,000 would likely push it to new lows.
If BTC manages to hold, it could target a minimum of $91,600 in the coming days, according to the Mean Reversion Channel.
Is This an Opportunity ?
In conclusion, the increased volatility in the cryptocurrency market over the last 24 hours has been fueled by several key factors, including trade tensions, stock market decline, and technical dynamics. While these movements may seem concerning in the short term, savvy investors know that the volatile nature of the crypto market also presents long-term opportunities for those who can navigate these turbulent waters.
Indeed, smart money uses these panic moments to accumulate and subsequently drive prices up rapidly. By maintaining a long-term perspective and relying on thorough analysis, investors can take advantage of market fluctuations.
Here is a guide to buying your cryptocurrencies easily on Bitget:
- Create a Bitget account
Visit the official Bitget website and sign up with your email or phone number. Validate your registration via the code sent. - Verify your identity (KYC)
Complete KYC verification by submitting an ID and, if necessary, proof of address. This quick step is required to access all trading options. - Fund your wallet
In the “Deposit” section, add funds with cryptocurrencies (USDT, BTC, etc.) or via fiat (credit card, bank transfer). Follow the steps to finalize the deposit. - Select your cryptocurrency
Access “Spot Market” or “Trading,” search for your choice of cryptocurrency (e.g., ETH, XRP, SHIB) in the dedicated bar, and choose its pair, like ETH/USDT. - Place your order
Choose a market order for instant purchase or a limit order to set a specific price. Specify the desired quantity, verify, then confirm your transaction.
