The bullish trend that dominated the crypto market at the start of the week was short-lived, as Bitcoin and most altcoins lost a significant portion of their recent gains. This volatility led to a massive wave of liquidations, affecting over 180,000 traders in just a day.

Major Liquidations Hit the Market

According to TradingView data, the largest liquidation order was placed on BitMEX, totaling $10 million. In total, more than $630 million in leveraged positions were wiped out during the price correction.

The Impact of U.S. Crypto Policies

Earlier, reports confirming that the U.S. government is working on a strategic crypto reserve fueled an unprecedented market surge of up to 60% in just hours. This was further boosted by Trump’s remarks on Bitcoin and Ethereum, which sent BTC soaring from $85,000 to a weekly high of $95,000, while ETH hit $2,500.

The Market Pullback

However, on Monday, the market saw another correction, bringing Bitcoin back down to $85,000. Analysts had warned that a move above $90,000 could be a false breakout, and the subsequent pullback validated their concerns.

The increased volatility severely impacted traders using high leverage, with over 180,000 positions liquidated. Data from CoinGlass shows that $146 million out of $155 million in liquidations within a single hour were from short positions.

What’s Next?

With regulatory uncertainty and geopolitical tensions continuing to influence the crypto market, traders must remain cautious. Will Bitcoin reclaim its highs, or is more downside ahead?