|
Getting your Trinity Audio player ready...
|
- $20B liquidation triggers intense fear on Binance and other CEXs.
- Bitcoin drops $22K in an hour, wiping out leveraged positions.
- Analysts debate whether market suppression is temporary or a prelude to altseason.
The crypto market is facing heightened selling pressure following a massive $20 billion liquidation, with centralized exchanges (CEXs) like Binance leading the sell-off. Traders are navigating a sudden shift from bullish optimism to deep fear, as market dynamics reset in real time.
Binance Spot: Selling Pressure in Overdrive
Binance has been at the center of the market turmoil, frequently triggering sell orders that prevent any meaningful recovery. Following Bitcoin’s (BTC) surge to a record $126,000, prices plunged to $104,000 in just one hour, wiping out long and leveraged positions. Even $3 billion in short positions were eliminated, leaving many traders stunned. Analysts note that this sharp downturn may reflect both market overbought conditions and possible manipulation by major players aiming to shake out speculative traders.
Bearish Sentiment Deepens
The aftermath of the liquidation has cast a shadow over the market’s short-term outlook. Fear sentiment is now dominating trading floors, with bullish momentum effectively stalled. Market watchers question whether the current bull cycle is faltering or if altseason will be skipped entirely. Some experts argue that the market may be intentionally suppressed to prevent an early BTC pump before a strategic recovery occurs, leaving altcoins waiting in the wings.
Also Read: Binance Bans 600+ Accounts, Offers 50% Rewards for Reporting Violators
Rumors and Market Speculation
Adding fuel to speculation, rumors suggest former US President Donald Trump could leverage rising gold prices to offset national debt before directing funds into BTC once the dollar stabilizes. While unconfirmed, this narrative aligns with observed market behavior, where Binance appears to be “hammering the sell button” to limit BTC’s upward movement. Such actions feed both fear and uncertainty, reinforcing bearish trends for now.
The $20 billion liquidation has fundamentally reset market expectations. While Bitcoin and other cryptocurrencies may eventually recover, current trends point to a market dominated by fear and controlled sell-offs. Traders are urged to proceed with caution and watch closely for signs of recovery before making major moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
