• The cryptocurrency market saw over $1.28 billion in liquidations in 24 hours, with 386,000 traders affected.
  • Speculation continues about a potential U.S. Bitcoin Strategic Reserve, with Polymarket estimating a 38% chance of an executive order within Trump’s first 100 days.

The cryptocurrency market endured a volatile 24 hours, with liquidations reaching an astonishing $1.28 billion. This turbulence followed Donald Trump's presidential inauguration speech, which notably omitted any mention of cryptocurrency, leading to widespread speculation and market jitters.

Data from Coinglass revealed that over 386,000 traders were liquidated during the period. Long positions accounted for $816 million of the losses, while short liquidations totaled $307 million. These figures underscore a marked shift in market sentiment as traders scrambled to adjust to rapid price movements.

Bitcoin, which recently achieved a fresh high of $109,000 on Sunday, demonstrated relative stability, trading at around $103,500 at press time, according to The Block's Price Page. Despite a 2.2% dip in its value over the past day, bitcoin remained less affected than major altcoins like Solana and Cardano, which plummeted by over 9% and 5%, respectively.

Lukman Otunuga, Senior Market Analyst at FXTM, commented on the situation:

"Bitcoin’s sensitivity to U.S. economic data and Fed rate expectations means traders should brace for heightened volatility in the days ahead."

Additionally, QCP Capital analysts noted elevated funding rates on derivatives platforms like Deribit, signaling underlying optimism despite market consolidation.

Amid this turbulence, speculation continues about a potential U.S. Bitcoin Strategic Reserve (SBR). Polymarket data suggests a 38% probability of President Trump signing an executive order to establish an SBR within his first 100 days in office. However, industry experts like Bitget CEO Gracy Chen caution against premature conclusions.

“Establishing a bitcoin strategic reserve within the first 100 days remains largely speculative. Implementing such a disruptive policy requires thorough planning, regulatory support, and alignment with the Federal Reserve's framework,” she noted.

Edited by Harshajit Sarmah