The crypto market witnessed a notable pull back over the last day, resulting in massive liquidations almost touching $928 million on Wednesday. Bitcoin price slipped by 2.35 percent over the last day, data by CoinMarketCap. At the time of writing the most expensive crypto asset was trading at $88,715 — down from the $91,000 price point it was simmering at for over 48 hours.
Ether joined Bitcoin on the red side of the crypto chart. The asset dropped by 5.17 percent over the last day to retail at $2,930 on Wednesday.
Analysts have however cautioned market participants against panicking. In conversation with Coin Headlines, analysts said this phase appears to be a healthy pullback rather than a trend reversal.
The crypto market is consolidating as concerns over tariff-driven inflation keep investors cautious. Bitcoin is holding near $89,000, while Ethereum has slipped below the $3,000 psychological mark.
“This phase appears to be a healthy pullback rather than a trend reversal. On-chain data points to easing sell-side pressure and renewed accumulation, with spot volumes rising from $8.8 billion to $9.3 billion and net buy-sell imbalance expanding to $81.2 million,” said Akshat Siddhant, Lead Quant Analyst, Mudrex.
At a time that U.S. President Donald Trump is pitching an acquisition of Greenland for national security reasons, the market winds have turned choppy.
A majority of altcoins are bleeding on the price charts. BNB, XRP, Solana, Tron, Dogecoin, Cardano, Chainlink, and Stellar registered price drops of under three percent. Meanwhile, Monero (XMR) joined Hyperliquid in clocking in price drops reaching nine percent each.
Bitcoin Cash, Zcash, Canton, Shiba Inu, and World Liberty Financial emerged among a small number of tokens that reeled-in small profits on Wednesday.
The sharp sell-off in Japan’s government bond market and renewed trade threats from U.S. President Donald Trump toward the European Union have been named as crucial reasons that trigged the market slump over the last 24 hours.
“As investors pulled back from riskier assets, bitcoin’s share of the total crypto market climbed to nearly 60 percent, reflecting its relative resilience compared with smaller tokens. The sell-off mirrored declines in traditional markets, with the Nasdaq down nearly two percent and major Asian and European indices also lower, while safe-haven assets surged, sending gold and silver to fresh record highs as investors sought protection amid rising volatility,” Sathvik Vishwanath, Co-Founder and CEO, Unocoin told Coin Headlines.
Over 172,680 traders were liquidated in the last 24 hours with the total liquidations hitting $927 million over the last day, CoinGlass data showed.
With everything going on in the backdrop, the overall crypto market cap fell by 2.85 percent. It presently stands under $3 trillion at $2.99 trillion, as per CoinMarketCap.