The cryptocurrency market has been rocked by significant liquidations totaling approximately $599 million in just 24 hours, coinciding with Bitcoin's (BTC) surge past $93,000. This surge, which saw Bitcoin gain nearly 7%, has been attributed to renewed optimism regarding U.S.-China trade relations, particularly following announcements from U.S. President Donald Trump about substantial tariff reductions on China.
As Bitcoin led the charge with $3.35 million in liquidations, other cryptocurrencies were not spared. Ethereum (ETH) experienced $1.2 million in liquidations, while meme coins like Dogecoin (DOGE) and PEPE also saw significant losses, with $1.59 million and $395,000, respectively. Altcoins such as XRP and SOL faced liquidations of $459,000 and $457,000, respectively.
In total, 147,581 traders were affected by these liquidations, with the largest single liquidation occurring on Binance, involving a $4.33 million ETH-USDT trade. The breakdown of liquidations revealed that long positions accounted for $73.36 million, while short positions were hit harder, totaling $526 million.
Exchanges were significantly impacted, with Bybit leading the way with $254.28 million in liquidations, predominantly from short positions (92.04%). Binance followed with $110.97 million (78.95% short positions), while Gate.io, HTX, OKX, CoinEx, Bitfinex, and Bitmex also reported substantial liquidations.
Following the surge, U.S. Treasury Secretary Scott Bessent, a noted advocate for cryptocurrency, spoke at a closed-door JPMorgan event, labeling the current U.S.-China trade standoff as "unsustainable." He expressed optimism about a de-escalation in tensions, although he cautioned that a complete trade agreement could take years to finalize.
Despite the positive momentum, analysts have raised concerns about the sustainability of Bitcoin's price rebound. Trader Roman pointed out that Bitcoin is currently retesting previous support levels as resistance around the $93,000 mark. He stated, "Price now retesting prior support as resistance for now. A breakout above $93k would be great for bulls, however, I’m unsure if we’ll get it… Wait for the weekly close before you make assumptions or get excited. We’ve seen so many fake outs before. 5 days left."
Adding to the skepticism, the analytics platform Ecoinometrics highlighted a concerning divergence between Bitcoin and the Nasdaq 100 index. While Bitcoin is climbing, the Nasdaq is trending downward, a situation that historically does not last.
Meanwhile, Ethereum and SOL also enjoyed gains, with ETH rising 8% to surpass $1,700 and SOL gaining 7.2%, now valued at $148.46. SUI saw a remarkable increase of 21.1%, bringing its price to $2.72, while XRP increased by 5.6%, now valued at $2.21.
In a separate analysis, Bitcoin's value relative to gold (BTC/XAU) may be set for a steep decline of 35%, reflecting historical trends during bear markets. As of April 22, 2025, the BTC/XAU ratio closed below its 50-period exponential moving average (EMA) for the first time since April 2022, a critical signal that has historically led to extended downtrends.
Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, noted that the current market conditions mirror those of previous downturns. He stated, "What's $13 trillion? The 2025 peak-to-trough drop in U.S. stock market capitalization -- almost 50% of GDP," adding that while bounces are to be expected in bear markets, the prevailing trend for both Bitcoin and equities may remain downward.
The historical correlation between the BTC/XAU ratio and Bitcoin's price suggests that Bitcoin could be at risk of declining toward its 200-week EMA, which currently sits near $50,950. This pattern was evident during previous cycles, including the 2021-2022 bear market, where Bitcoin's price fell dramatically after breaking below the 50-EMA.
As traders navigate this volatile landscape, the sentiment remains mixed. While some are optimistic about the potential for Bitcoin to break above the $93,000 resistance level, others caution that the current market dynamics and historical patterns suggest that a significant correction may be on the horizon.
The crypto market's fluctuations are a reminder of the inherent risks involved in trading and investing in digital currencies. As always, investors are encouraged to conduct thorough research and remain vigilant in monitoring market trends.
