The cryptocurrency market saw total forced liquidations exceeding $841 million in the last 24 hours leading up to Friday, May 30, during the late North American trading session. With Bitcoin (BTC) dropping below $105k, the altcoin market, particularly the memecoins, experienced significant forced liquidations among long-leveraged traders.
According to Coinglass market data, long traders accounted for over $747 million in forced crypto liquidations. The forced liquidations of Bitcoin’s whale-long traders, spearheaded by James Wynn, fueled further short-term pessimism.
On the other hand, short crypto traders witnessed approximately $80 million in forced liquidations within the past 24 hours. This has raised concerns about a potential long squeeze despite the overall market optimism for a rebound over the weekend.
What Next for the Altcoin Market
Despite the ongoing downturn, there is still hope for a crypto rebound in the coming days. Bitcoin’s fear and greed index stood at around 60 percent, indicating greed among crypto traders.
The improving regulatory environment for cryptocurrencies in key jurisdictions, particularly the United States, has attracted more institutional investors to the web3 space. This suggests that many crypto investors are anticipating a bullish resurgence soon, possibly leading to a parabolic rally in the near future.
However, the prevailing bearish sentiment could potentially delay a bullish recovery, especially if Bitcoin’s price dips below $100k again in the near future. Nevertheless, a significant increase in bearish traders may trigger a substantial short squeeze if Bitcoin rebounds above $110k in the coming days.
The bullish outlook for crypto is supported by the growing adoption from institutional investors and favorable regulatory frameworks in major jurisdictions. Therefore, a cautious approach may be advisable in the days ahead, particularly if Bitcoin manages to stay above $96k.
