Bitcoin and Ethereum saw a bearish turn when sentiment changed due to circumstances such as geopolitical tensions and macroeconomic conditions. The recent crypto market liquidation event underscores the volatility and risk in the rapidly changing market of digital assets.

Bitcoin continued its downward trajectory, posting an intraday low of $103,396.53 and closing at $104,735.63 (-2.06%). This drop came alongside a 1.97% drop in Open Interest for Bitcoin in the last 24 hours. Despite the significant drop in price, the majority of Binance’s top traders remained long on Bitcoin. The scientific data reflects that they continue to be bullish on the market. About $650 million in Bitcoin shorts were at risk of liquidation if Bitcoin made a miraculous run up to $107,000.

Ethereum continued its correction after surging until early last week, dropping under the $2,500 mark. It has since rebounded a bit and currently trades at $2,525.57, representing a -1.79% adjustment.

The global cryptocurrency market capitalization followed suit, falling by 1.36% to $3.25 trillion as the wider crypto market felt this dip. Over the past 24 hours, market liquidations have topped more than $330 million. These massive $268 million long bullish bets weren’t just busted – they were completely killed.

SmartContract Analyst Michaël van de Poppe was impressed with the recent price action of Bitcoin to say the back.

"Doesn’t say that we’ve bottomed, but it’s a great sign to be accumulating those corrections before the next BIG leg upwards happens" - Michaël van de Poppe

Van de Poppe pointed to a key level for potential bullish momentum:

"Reclaim of $106,000 is where the party happens" - Michaël van de Poppe

Not all cryptocurrencies experienced losses. Bitcoin SV (BSV) gained +1.98% to reach $31.81, AB (AB) increased by +0.66% to $0.01554, and Jito (JTO) rose +0.08% to $2.19.

Even traditional markets were showing signs of anxiety. The Dow Jones Industrial Average fell 299.29 points, or 0.70%, ending at 42,215.80. The broad S&P 500 index lost ground, falling 0.84% to close at 5,982.72.