Markets
Trump’s Bitcoin 2024 Speech Triggers $24M in Long-Term Liquidations Amid Market Volatility
Trump speaks at Bitcoin 2024. Source: Bitcoin Magazine Livestream.
Key points
- Trump’s Bitcoin 2024 speech led to a sharp rise and then a fall in Bitcoin prices.
- Nearly $24 million in long Bitcoin positions were liquidated during the speech.
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Bitcoin prices experienced significant volatility during former US President Donald Trump’s speech at Bitcoin 2024 in Nashville, where he unveiled plans to establish a “national strategic bitcoin reserve” if re-elected.
The price of Bitcoin (BTC) has seen sharp swings as traders reacted to Trump’s comments. Before the speechBitcoin rose above $69,000. However, the price later dropped to as low as $66,700 before rebounding to above $68,000, according to CoinGecko data.
Trump’s announcement of plans to create a national Bitcoin reserve if elected aligned with market expectations ahead of the event. The former president’s comments sparked a flurry of trading activity, with nearly $24 million in long positions liquidated during the speech alone.
Liquidation data
Coinglass data indicates that BTC recorded the highest liquidation value at $5.03 million, followed by SOL with $2.44 million and ETH with $1.46 million in the selected time frame. This indicates a significant volume of forced selling in these cryptocurrencies, with BTC being the most affected.
On the right side, the sheet details total liquidations for various periods. In the last hour, total liquidations reached $10.89 million, with $1.80 million in long positions and $9.09 million in short positions. In four hours, liquidations amounted to $94.96 million, with long positions amounting to $71.28 million and short positions amounting to $23.68 million.
Total liquidations in 12 hours were $146.87 million, with $94.20 million in long positions and $52.67 million in short positions. For the 24-hour period, liquidations were $165.21 million, with long positions at $100.04 million and short positions at $65.17 million. These figures highlight that liquidations were more significant for long positions across all timeframes, indicating greater losses for long traders.
The broader cryptocurrency market mirrored Bitcoin’s price movements during the event. This volatility highlights the significant impact that high-profile political figures and political announcements can have on cryptocurrency markets.
Rapid price swings and substantial liquidations underscore the cryptocurrency markets’ continued sensitivity to regulatory and political developments. Trump’s proposal for a national Bitcoin reserve represents a potential shift in the relationship between traditional government institutions and digital assets, should it materialize.
Earlier this month, Donald Trump argued that all future Bitcoin mining should be conducted in the United States, to counter central bank digital currencies and strengthen the nation’s energy dominance.
Analysts have also observed a significant increase in implied volatility of Bitcoin options, speculating on major announcements from Trump at the upcoming Bitcoin 2024 conference.
The policy proposed by Donald Trump for a weaker US dollar If re-elected, he has been scrutinized for his potential to boost the value of Bitcoin, marking a shift from traditional strong-dollar policies.
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