Trump's Crypto Reserve Spark: $1B Liquidations in 24 Hours

The cryptocurrency market has witnessed significant liquidations in the past day, totaling nearly $1 billion, as Bitcoin and altcoins rebounded following a bearish February. The recovery was sparked by an announcement from former US President Donald Trump, who revealed plans for a Crypto Strategic Reserve that includes Bitcoin, Ethereum, XRP, Solana, and Cardano.

The news of the Crypto Reserve, which has been much-anticipated in cryptocurrency circles since the US elections, has had a drastic effect on trader sentiment. Bitcoin approached the $95,000 level during the surge but has since witnessed a small pullback to $92,800. Ethereum displayed a similar pattern, with a retrace from $2,550 to $2,360. Overall, the top two cryptocurrencies are up 8% and 6% during the last 24 hours, respectively.

Interestingly, XRP, SOL, and ADA, the three coins initially announced, have shown much stronger rallies of 17%, 13%, and 48%, respectively. The bullish momentum has not been restricted to just these five coins, as coins across the space have observed some degree of rise. This volatility has led to a significant increase in liquidations on derivatives platforms.

According to data from CoinGlass, a total of $971 million in cryptocurrency derivatives contracts have found liquidation in the past day. Around $558 million of these liquidations involved short investors, representing over 57% of the total. Despite the bullish action, around $412 million in long holders still got liquidated as a result of the pullback. Bitcoin and Ethereum have predictably come out on top with $353 million and $182 million in liquidations, respectively.