Cryptocurrency Market Update

The cryptocurrency market is facing selling pressure, with nearly $1 billion in liquidations across various assets in the past 24 hours, per Coinglass data. The stock market also saw a similar decline, with legendary trader Peter Brandt weighing in on the current market situation.

Bitcoin (BTC) has seen yet another price reversal, filling in Friday’s CME gap and trading at $83,540, down nearly 10% in the last 24 hours. Meanwhile, the Nasdaq 100 has fallen about 10%, and another similar plunge would signal a bear market.

In a tweet, Brandt commented on the current markets (BTC, stocks), stating that the volatility of the past week represented the chance to make a lot of money or lose a lot of money. He expressed his dislike for trading such volatility because losing money is a binary alternative. He emphasized that trading is a marathon, not a sprint.

> Peter Brandt on current markets
> The volatility of the past week represented the chance to make a lot of money or lose a lot of money.
> I don’t like trading such volatility because “lose a lot of money” is a binary alternative.
> Trading is a marathon, not a sprint.
> @PeterLBrandt

Brandt’s statement highlights a key principle in trading: high volatility can be both an opportunity and a trap. While some traders may have profited from wild price swings, others suffered significant losses, underscoring the importance of risk management and long-term planning.

Market Sell-off

The crypto market faced a brutal sell-off in the early Tuesday session, continuing momentum from Monday. Practically all cryptocurrencies in the top 100, save stablecoins, were in the red, with several suffering double-digit losses. In the last 24 hours, over $978 billion worth of crypto derivatives were liquidated; bullish bets accounted for the majority at $833.71 million, while shorts liquidation reached $144.46 million.

Sunday’s announcement of a crypto strategic reserve that would include ADA, XRP, and SOL, alongside Bitcoin (BTC) and Ethereum (ETH), sparked initial market frenzy. ADA surged more than 60%, XRP climbed 33%, and SOL surged 22% immediately thereafter. Bitcoin and Ethereum also surged alongside the rest of the cryptocurrency market.

However, the initial excitement was short-lived due to profit-taking and a risk-off mood in the broader equity markets. The sharp reversal aligned with cautious sentiment among traders.

Amid the ongoing sell-off, Tom Lee, Head of Research at Fundstrat, believes the broader market may be nearing a bottom, possibly as soon as this week.