The cryptocurrency market experienced over $841 million in total forced liquidations in the past 24 hours leading up to Friday, May 30, during the late North American trading session. With Bitcoin (BTC) dropping below $105k, the wider altcoin market, particularly the memecoins, saw significant forced liquidations among long-leveraged traders.
Coinglass market data shows that long traders accounted for more than $747 million in forced crypto liquidations. The forced liquidations of Bitcoin’s whale-long traders, spearheaded by James Wynn, further fueled short-term pessimism.
On the other hand, short crypto traders faced around $80 million in forced liquidations over the past 24 hours. This has raised the possibility of a long squeeze despite the overall market optimism for a weekend rebound.
What Lies Ahead for the Altcoin Market
Despite the ongoing bloodbath, optimism for a crypto rebound in the coming days remains strong. Bitcoin’s fear and greed index stood at around 60 percent, indicating greed among crypto traders.
The improving regulatory frameworks for crypto in major jurisdictions, particularly the United States, have attracted more institutional investors to the web3 space. This suggests that many crypto investors are anticipating a bullish rebound soon, possibly leading to a parabolic rally in the near future.
However, the current bearish sentiment could potentially delay a bullish rebound, especially if Bitcoin’s price falls below $100k again in the near future. Nevertheless, a significant increase in bearish traders may trigger a major short squeeze if Bitcoin’s price rebounds above $110k in the coming days.
The bullish outlook for crypto is supported by the increasing adoption by institutional investors and favorable regulatory frameworks in major jurisdictions. Therefore, a cautious approach may be advisable in the coming days, unless Bitcoin’s price drops below $96k.