Crypto Liquidations Reach $863.08 Million – What Has Shaken the Market Today?

Crypto liquidations hit $863.08M as Bitcoin surged past $94K. Altcoins rally while traders brace for volatility. Will this momentum last? Read more now!
The market is experiencing a period of extreme volatility, with liquidations and surges creating a frenzy. Some traders have lost their positions, while some have benefited greatly from an unexpected governmental announcement. The following Bitcoin price surge kickstarted the altcoin market rally, creating a market-wide rally. While this price surge has created excitement, worries about further governmental trends and corrections remain. As such, traders remain cautious about the upcoming days and economic events.

Short Sellers Wrecked as Crypto Bulls Take Over

The crypto market was in chaos in the last 24 hours as liquidations reached $863.08 million. A whopping 191,903 traders saw their positions liquidated, with the biggest liquidation coming from BTC at $15.49 million. Because the market was in a slump, a large number of $547.17 million liquidations were from short positions. Unsurprisingly, the smaller number of liquidations came from long positions standing at $298.66 million.

To further break these numbers, Bitcoin saw $241.84 million of short positions liquidated and $73.30 million in longs. Next in line is Ethereum, with $86.24 million in liquidations in shorts and $73.98 million in long positions. XRP also experienced chaos, with $44.21 million from shorts and $31.92 million from longs liquidated. Moreover, Cardano and Solana both also saw $67.61 and  $62.48 liquidations respectively.

This market-wide rally and the trend of short positions’ liquidations all started with Donald Trump’s announcement. He announced a US Crypto Reserve and mentioned Bitcoin, Ethereum, XRP, Solana, and Cardano, stating he likes them all. This favorable governmental stand was the direct opposite of the last administration’s hawkish view of crypto.  As such, this renewed excitement triggered a market frenzy, with crypto prices soaring after a week of a downtrend. 

The Biggest CME Gap in History: Bitcoin Pullback?

The Bitcoin price surge was explosive after the National Crypto Reserve’s announcement. BTC reached as high as $94,598 and created a nearly $10,000 daily candle based on Coinmarketcap’s data. But this explosive growth has also created some worries as Bitcoin now trades at $91,706. This sudden growth created the largest CME gap in the history of Bitcoin. This is worrisome to some traders as these gaps tend to get filled, likely pulling BTC’s price down.

Provided by CoinGecko, published on Tradingview, March 3. 2025. 

Based on Graph 1, Bitcoin dominance also experienced a fall.  This was because the first announcement only mentioned SOL, XRP, and ADA. Based on Graph 1,  Bitcoin dominance fell from 55.4% to under 50%. This was also caused by a massive altcoin market rally. Cardano and XRP prices increased by 60.3% and 34.7%, respectively. SOL and Ether also saw an increase in the value of 25.5% and 13.1%, respectively.

Economic Events Could Shake the Crypto Market

Although with a bang, the week is just beginning, and this crypto rally will be tested with the upcoming challenges. As the week continues, we have the US employment data announcement coming up, which the crypto market historically has reacted to. On March 6, we will have the jobless claims, and on March 7, the US jobs report. Jerome Powell, the Chair of the Federal Reserve, will also give a speech on this da,y igniting volatility.

The crypto market could rise if the government keeps supporting digital assets. However, traders should expect occasional drops as investors secure profits and markets adjust. Smart risk management and staying updated on financial trends are essential. Moreover, key economic factors will influence price movements, so keeping track of them is necessary.