Bitcoin Holds $70K as Extreme Fear Lingers and $297M in Liquidations Hit Markets

The cryptocurrency market is trading higher overall, with total market capitalization rising to $2.39 trillion, up 2.42% on the day.

Key takeaways

• Total crypto market cap increased by 2.42% to $2.39 trillion
• Weekly performance remains negative across major assets
• Market sentiment stays in extreme fear

Despite the rebound, sentiment remains cautious, as the Fear & Greed Index sits at 8, firmly in extreme fear territory.

Bitcoin is holding near $70,177, posting a 3.83% gain over the past 24 hours, though it remains down 10.54% on the week.

Ethereum is showing similar strength, climbing 4.69% daily to $2,092, even as it continues to trail its recent highs with a 12.50% weekly decline. The broader market appears to be stabilizing after a sharp pullback, with short-term relief outweighing longer-term pressure.

Among large-cap assets, XRP rose 2.80% over the past 24 hours, while BNB added 1.20%. Solana also moved higher on the day, gaining 2.47%, though it remains among the weaker performers on a seven-day basis. Stablecoins continued trading close to their pegs, signaling limited defensive capital rotation.

Overall, the rebound appears driven more by positioning and short-term relief than a decisive shift in market sentiment. With the average crypto RSI near 47, conditions suggest the market is neither deeply oversold nor entering a new bullish phase.

Liquidations highlight ongoing volatility

Despite the price recovery, derivatives data shows elevated stress across leveraged positions. According to CoinGlass, total liquidations reached $297.68 million over the past 24 hours, with short positions accounting for $217.45 million, indicating that the upside move caught many bearish traders off guard.

Ethereum led liquidations with $137.74 million, followed by Bitcoin at $90.47 million, while Solana and XRP also contributed notable losses. In total, 94,526 traders were liquidated, with the largest single order—a $32.51 million ETHUSDT position—recorded on Bitget.

The liquidation imbalance suggests the rally was fueled in part by forced short covering rather than fresh spot demand, reinforcing the view that volatility remains elevated even as prices attempt to stabilize.

Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.