The cryptocurrency market has experienced over $672 million in liquidations, with Bitcoin’s price falling below $88,000 leading to significant losses primarily among long traders. Ethereum also faced a notable decline, trading at $2,124.95. Overall, market volatility, influenced by geopolitical factors, presents a challenging outlook for digital assets.

In the last 24 hours, the cryptocurrency market witnessed over 195,184 liquidations, totaling approximately $672.38 million. A notable liquidation of around $10 million occurred on the BitMEX exchange, primarily due to Bitcoin’s (BTC) price drop below $88,000, which raised investor concerns stemming from Trump tariff policies.

As of March 3, Bitcoin’s price plummeted to about $88,000 and continued to decline to $86,846.88, marking a 6.93% decrease within the day. This led to Bitcoin leading the liquidations, with Coinglass reporting liquidations valued at $258.70 million, predominantly affecting long traders who had anticipated a price increase.

Ethereum was also significantly impacted, facing approximately $148 million in liquidations, most of which stemmed from long positions, resulting in losses of $114.52 million compared to $33.68 million for short traders. The adverse price movements also affected other cryptocurrencies including Solana (SOL), Dogecoin (DOGE), and Ripple’s XRP.

Over the past week, Bitcoin has demonstrated a bearish trend, retracting from its prior gains, including a significant drop to $78,197 on February 28. However, a recovery during the weekend indicated potential accumulation, despite current analytics highlighting low exchange flows and reduced whale activity, which typically signals expectations of further declines.

Ethereum is currently trading at $2,124.95 following a 15.15% decrease, leaving analysts uncertain about its future performance. Forecasts vary widely, with some projecting the cryptocurrency could reach $7,000 while others speculate a potential rise to $10,000, attributed to Ethereum’s status within decentralized finance.

President Donald Trump’s administration has had a profound impact on the cryptocurrency landscape in the United States, favoring certain assets for inclusion in the strategic reserve. Despite a recent market rally resulting from this policy, it appears to be unsustainable, as evidenced by Ethereum’s current decline among other strategic assets listed.

In summary, the cryptocurrency market has faced significant liquidations totaling approximately $672 million as Bitcoin’s price fell below $88,000. Both Bitcoin and Ethereum saw substantial declines, impacting long traders severely. Current market indicators highlight bearish trends and reduced whale activity, casting doubt on the feasibility of anticipated price rebounds. The geopolitical landscape involving federal policies continues to create volatility within the market.

Original Source: www.thecoinrepublic.com

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