The post Market Shifts Spark Liquidation Crisis in Crypto appeared on BitcoinEthereumNews.com.

In a surprising turn of events within the cryptocurrency sector, recent market fluctuations have led to a significant wave of liquidations. Over the past 24 hours, 156,601 traders found themselves liquidated, resulting in total losses amounting to $573.19 million. This unexpected downturn has raised concerns and prompted a closer examination of market behavior. What Caused the Liquidations?Will Current Policies Affect the Market? What Caused the Liquidations? Bitcoin saw a notable decline to $74,589 before rebounding by more than 8% to reach $82,942.43. This rapid increase caught many short-position traders off guard, with the largest liquidation on the OKX exchange hitting $4.47 million. Overall, short-position traders suffered losses of $137 million, while long-position traders faced a hit of $87.77 million. Ethereum and XRP were not spared either, facing liquidations of $161.71 million and $26.75 million, respectively. Will Current Policies Affect the Market? Tensions in trade relations between the U.S. and China have introduced new complexities into the market. A recent announcement by the U.S. President includes a 90-day suspension of tariffs for countries engaged in negotiations, although China still faces a substantial 125% tariff. This imbalance adds continued risk, particularly for short-term traders, yet the overall upward trend of the market persists. Despite the turbulence, Bitcoin prices have remained above the critical $74,000 mark since April, indicating a measure of stability that bolsters investor confidence. While some market commentators express optimism about sustainability, they caution against the potential long-term ramifications of ongoing geopolitical tensions. Samson Mow, a notable Bitcoin advocate, likened the current price movements to a mini ‘Godzilla’ effect, highlighting the unpredictable nature of the market at this time. Analysts suggest that the cryptocurrency market may be entering a normalization stage, but challenges remain as unexpected events could trigger volatility. The current environment calls for traders to be vigilant, particularly…

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Filed under: News - @ April 10, 2025 3:20 am