The Rise of Crypto Market Capitalization
On March 2, the crypto market witnessed a significant surge in value, with an increase of approximately $330 billion after US President Donald Trump announced plans for a national crypto reserve. The total market capitalization, as reported by CoinMarketCap, soared by around 10%, reaching a peak of $3.15 trillion from $2.83 trillion. Although there was a slight retracement to $3.02 trillion at the time of writing, the market experienced a notable rebound.
Impact on Traders
However, this rapid rally came with consequences, leading to over $960 million in liquidations within a single day. Short traders who were betting against price increases faced the majority of liquidations, with losses exceeding $549 million. Conversely, long position holders also suffered significant setbacks, with liquidations totaling $412 million.
Asset-Specific Losses
Among different assets, traders who speculated on Bitcoin prices endured liquidations amounting to $348 million, while those involved in Ethereum trading saw losses of over $180 million. Additionally, traders engaging in other digital assets such as XRP, Solana, and Cardano experienced combined losses exceeding $220 million during this period.
