Crypto Liquidations Hit $2.65 Billion in the Past 24 Hours, but Bears May Be Near Capitulation
Over $2.65 billion in crypto liquidations occurred in 24 hours, signaling structural weakness but potentially marking bear capitulation.Summary
Total cryptocurrency liquidations reached $2.65 billion in the last 24 hours, with over $2.2 billion coming from long positions, reflecting significant market stress. This high volume, which nearly matches the smallest event in the Top 10 historical liquidations, is attributed to a structural downturn since October, driven by weak liquidity, negative sentiment, and cascading liquidation pressure. Bitcoin's market depth has sharply declined to 30% of its October peak, mirroring the post-FTX environment. Despite the bearish pressure, which has pushed some corporate holdings like MicroStrategy's below cost basis, analysts suggest a potential turning point. Glassnode's capitulation index spiked significantly, indicating forced selling, and large liquidations reduce overall market leverage. Technical analyst Peter Brandt suggested Bitcoin support near $42,000 based on his 'Bitcoin Power Law' model, implying that this deleveraging phase could soon create a strong buying opportunity as 'weak hands' exit the market.
(Source：BeInCrypto)