Bitcoin Rebound 1% After $260 Million Liquidations

In the past 24 hours, the cryptocurrency market experienced heightened volatility, with Bitcoin emerging as the top performer while many altcoins faced significant pressure. Total liquidations across the sector surged, nearing the $260 million mark.

Bitcoin's price plummeted to a local daily low of approximately $105,145 but managed to recover swiftly, forming a V-shaped rebound. As a result, it is currently trading at $107,720, up nearly 1% for the day. This volatility coincided with significant economic developments in the US, where a major legislative bill passed the Senate. If approved, this bill could potentially alleviate tax pressures on retail investors, freeing up capital for riskier investments and positively impacting the cryptocurrency markets.

While Bitcoin managed to recover, many altcoins struggled. The market dynamics showed a clear dominance of Bitcoin, with many altcoins dropping by more than 3% during the day. The best performer was PENGU, the native cryptocurrency of the Pudgy Penguins ecosystem, which rose by 6.3%. Conversely, Algorand’s ALGO was the worst performer, down by 6.5%. The increase in liquidated positions across the derivatives markets also highlighted the market's volatility, with a 30% rise in liquidated positions totaling around $260 million.

Bitcoin's significant plunge to $105,000 was driven by geopolitical tensions in the Middle East, leading to increased selling pressure and volatility. Despite this, Bitcoin's long-term uptrend remained intact, with a potential break above $90,700 paving the way to $95,000. The weekly chart showed a 5.50% dip, reflecting broader market volatility. However, Bitcoin held steady above $105,000 with a weekly Doji, indicating no immediate panic despite the geopolitical uncertainties. The low volatility above $105,000 created an 'inexpensive' trading opportunity with options, according to analysts. Meanwhile, Ethereum surged by 7.4%, indicating a clear speculative rotation towards altcoins. The market saw a significant liquidation event, with over $600 million in long positions wiped out as Bitcoin dropped below $104,000. Traders are now awaiting important economic announcements, which could further influence market movements. Altcoins, including NEAR Protocol, also experienced volatility, with NEAR plunging 4% before staging a recovery. The overall market sentiment remains cautious, with traders closely monitoring geopolitical developments and economic indicators.