TradingKey - With Trump set to take office, Bitcoin’s sharp decline has triggered a massive sell-off across the crypto market. Does this signal a cash-out opportunity for investors?
On Monday, January 20, Bitcoin’s price plummeted, falling below the $100,000 mark. At the time of this report, Bitcoin was down 4%, trading at $99,910.
Bitcoin price trend chart, Source: CoinMarketCap.
The drop in Bitcoin has caused a significant downturn in the entire crypto market, with ETH dropping nearly 5%, SOL declining 6%, and XRP plummeting 9%, leading to a wave of liquidations for many users. According to data, in the past 24 hours, 412,803 traders experienced liquidations, totaling over $1.2 billion, with bullish positions accounting for 77%.
Crypto Market Liquidation Data, Source: CoinGlass.
With the new Trump administration taking office today, the crypto market was initially filled with bullish sentiment. However, in the absence of any significant negative triggers, the crypto market has seen a sharp decline. A plausible explanation for this could be “malicious short-selling against longs to flush out profit-taking,” setting the stage for a potential rebound.
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