Market Overview
Bitcoin (BTC), which experienced a dip below $90,000 over the weekend, has begun the critical Federal Reserve week with a notable recovery.
As Bitcoin shows a slight upward trend, climbing back above the $91,000 level, major altcoins including Ethereum (ETH) are also registering gains.
Ethereum has re-established its position above $3,100. In the last 24 hours, XRP and Solana (SOL) have seen increases of 2.6% and 2.2%, respectively.
Market Drivers and Liquidation Risks
The continuation of this upward momentum for Bitcoin and altcoins is widely believed to hinge on the upcoming Federal Reserve decision and the accompanying statements from Fed Chairman Jerome Powell. Latest data from the cryptocurrency tracking platform Coinglass sheds light on potential market volatility.
According to Coinglass's latest data, Bitcoin's price fluctuations are likely to trigger substantial liquidation events across major cryptocurrency exchanges (CEXs).
The data indicates that if Bitcoin's price surges above $93,000, approximately $721 million worth of BTC short positions on CEXs are at risk of liquidation.
Conversely, a decline in Bitcoin's price below $90,000 could lead to the liquidation of $340 million worth of long positions.
Current figures reveal that $450 million worth of leveraged transactions were liquidated in the past 24 hours. Of this total, $293.2 million were long positions and $157.5 million were short positions.
Over the last 24 hours, 130,468 traders have faced liquidation. The most significant liquidation event was recorded in an ETH/USD transaction on Hyperliquid.