Crypto Market Liquidations Soar to $1.24 Billion, TRUMP Meme Coins Impacting Market?

by

Over the past day, the total crypto market liquidations exceeded $1.1 billion due to a drop in Bitcoin‘s price that temporarily took it below the $100K mark. However, it quickly recovered and continued its upward trend. The correction in the altcoin market was particularly pronounced following the introduction of the TRUMP and MELANIA meme coins on the Solana platform last weekend. These new meme coins are reported to have drained liquidity from other parts of the crypto market.

According to CoinGlass’s recent statistics, a staggering 406,000 traders experienced liquidation within the past 24 hours. Out of these, approximately $921 million were from long liquidations, while short liquidations amounted to around $260 million. Notably, Ethereum (ETH) spearheaded the market with a substantial $207.5 million in long liquidations, followed closely by Bitcoin with over $202 million in long liquidations. Here are some key details about ETH:
– Current price: $3,390
– 24-hour volatility: 5.1%
– Market cap: $408.52 billion
– 24-hour trading volume: $71.91 billion

Bitcoin and Altcoins Stage Strong Recovery

This afternoon, I observed that the introduction of the MELANIA meme token led to increased selling force for Bitcoin and other altcoins. The upcoming launch of TRUMP meme coins this weekend has drawn significant liquidity prior to Donald Trump’s inauguration on January 20th.

For a short while, Bitcoin dropped below its $100,000 threshold, but quickly rebounded. Currently, BTC is surging 2.6%, reaching an unprecedented peak of $108,258 and boasting daily trading volumes exceeding $108 billion. Despite the recent market fluctuations, ongoing on-chain developments suggest a bullish trend continuing.

In the last four days, approximately 20,000 Bitcoins, worth over $2 billion, have been taken out of cryptocurrency exchanges, according to analyst Ali Martinez’s findings. This substantial withdrawal suggests increasing investor trust and a shift towards storing Bitcoin outside of trading platforms.

Source: Ali Charts

Following significant rebound, various altcoins have experienced a robust resurgence within the past hour. Alongside Bitcoin, Ethereum’s price has climbed by $3, surpassing the $3,345 mark. According to technical analysis charts, the Ethereum price has rebounded from substantial support levels at $3,100. Notably, prominent crypto analyst IncomeSharks suggests that Ethereum could surge again and is prepared for a breakout beyond its downward trendline.

Ether (ETH) – Solid opening for investors, momentum rebuilding. Breaking the dotted line would serve as a strong signal to maintain positions for a prolonged period.

— IncomeSharks (@IncomeSharks) January 20, 2025

TRUMP Meme Coins Trigger Market Volatility

Over the course of the weekend, President Donald Trump and First Lady Melania Trump introduced their own meme cryptocurrencies, creating quite a commotion in the financial world. The Official TRUMP (TRUMP) meme coin quickly became the third-largest meme coin available, following closely behind Dogecoin (DOGE) and Shiba Inu (SHIB). Within merely two days of its debut, the TRUMP coin boasted a market capitalization of $11.7 billion.

Furthermore, TRUMP has become the largest Solana-based meme coin, outshining coins like BONK, PENGU, WIF, and others. The daily trading volumes for this meme coin have skyrocketed to an impressive $55 billion. In response to this development, Donald Trump Jr. posted:

As an analyst, I’m incredibly proud of the strides we’ve made in the cryptocurrency sphere. Currently, $Trump is the most popular digital meme globally, and I firmly believe that World Liberty Financial will disrupt DeFi/Cefi and shape the future of finance. We’re only scratching the surface of what we can achieve!

On the afternoon of Sunday, Melania Trump, the First Lady, introduced her own meme currency called MELANIA. Currently, it’s surging by 75%, and the price stands at $12.68. Moreover, its market capitalization has exceeded $2 billion, reaching new heights.

Read More

2025-01-20 12:01