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Key Takeaways
- Bitcoin’s price crash to $100,000 triggered heavy crypto liquidations, with over $1B liquidated in hours.
- Major altcoins like Ethereum, Solana, Ripple, and Cardano suffered price crashes as traders exited positions.
- Bitcoin and altcoins could consolidate for some time before resuming their uptrend, allowing a market to recover from such a price dump.
The crypto market witnessed dramatic events in the past few days before the Inaugural ceremony of Donald Trump, with the market buzzing with excitement regarding the launch of the TRUMP memecoin as the memecoin rallied by over 770% within 48 hours of launch on the Solana network.
This launch was followed by the MELANIA memecoin launch by Melania Trump dropping an official statement. This led to TRUMP memecoin dropping to a region of $35.
While traders are trying to handle the excitement and rush in the cryptocurrency market, the price of Bitcoin, after creating a new high of $109,000, dropped to a region of $100,000, leading to a cascade of crypto liquidations across the market with altcoins and memecoins heavily, hit by market dump.
While this extreme market volatility shocks many traders and investors, let’s take a deep dive and analyze the current market action and what it means for the cryptocurrency market going forward.
Trump’s Inaugural Ceremony Sparks Crypto Liquidation Frenzy
Source – BTC Long Liquidations By Coinglass
Political events from the past have always influenced the general financial market, and Donald Trump’s Inauguration ceremony was no exception. This saw the price of Bitcoin and other crypto assets suffer a steep decline in the last few hours as traders and investors were waiting for Trump to speak about crypto, but in his 30-minute speech, no crypto was mentioned.
Liquidations are a result of over-leveraged positions displaying traders’ intentions; the uncertainty of Trump’s ceremony led to the exit positions of many traders, which also led to wild liquidations of Bitcoin longs and shorts, including other crypto altcoins in the past few hours by Coinglass.
According to the Bitcoin liquidation from Coinglass, there was clear market chaos in the past few hours as the price of Bitcoin tanked to around $100,000, leading to significant sell-offs of crypto assets across the market, with liquidation taking place in major exchanges.
While the center figure was Bitcoin, altcoins, and memecoins were not spared from the carnage as the price of Ethereum dropped to a region of $3,250, XRP to a region of $2.87, and SOL to a region of $235, with other altcoins suffering significantly.
Bitcoin Price Prediction For Today, Tomorrow, And Next Week
Source – 4HR Bitcoin Market Outlook From TradingView
The price of Bitcoin reached a new all-time high of $109,000, but this rally was cut short as it dropped to a region of $100,000 despite demonstrating a strong bullish price uptrend in the last couple of days.
While Bitcoin struggles to regain momentum, the price of BTC trades above strong support of $100,000, corresponding to its 50-day and 200-day EMAs, which support the price and prevent the price from going lower.
With Bitcoin’s price dropping from its all-time highs, we could see it consolidate around $100,00 to $103,000 before it resumes its rally, allowing altcoins to take a breather.