Over the past 24 hours, the volume of liquidation of digital asset trading positions has exceeded $1.5 billion, intensifying concerns about the market entering a downtrend. Despite this being the third time liquidation volume has crossed $1 billion in February, analysts remain hopeful for market recovery, predicting an upward trend until mid-2025. Bitcoin (BTC) yesterday dropped below $90,000 for the first time in three months due to heavy capital outflows from ETFs of this digital currency, indicating a decline in institutional investor interest. Ethereum (ETH) experienced the highest liquidation volume, partly due to the aftermath of the recent attack on the Bybit exchange. The sudden drop today also indicates an increase in severe market corrections. From the beginning of 2025, four major plunges have occurred within 24-hour intervals, all influenced by macroeconomic factors. Although the market quickly recovers after each plunge, repeated occurrences suggest rapid shifts in traders’ sentiments. The fear and greed index confirms these fluctuations, showing that market sentiments hit their lowest levels in 2025. However, some market participants maintain a positive outlook. Binance CEO, Richard Tang, considers these developments a tactical retreat, emphasizing that the market fundamentals remain strong. He also believes that current corrections can provide good opportunities for experienced investors. Meanwhile, crypto-related political movements are expanding, and institutional investors still show interest in this sector. Binance data also confirm continuous growth in new users. Therefore, it seems that after this liquidation wave subsides, the digital currency market will prepare itself for larger growth opportunities.
