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Bears appear to be returning to the crypto market, and the sentiment is slightly shifting toward the negative side. The market experienced a massive liquidation wave, resulting in almost $138 million being wiped out in the last 24 hours. This latest trend shows the rising volatility that continues to plague digital assets, impacting thousands of traders across various crypto exchanges.

According to CoinGlass, the recent market meltdown resulted in 54,568 traders being liquidated, with $30 million coming from short liquidations and a whopping $108 million from long liquidations. The largest single liquidation order occurred on the OKX crypto exchange, involving an ETH-USD-SWAP position valued at around $2 million.

Current market sentiment

Examining the liquidation breakdown across major exchanges, Binance led the charge with a total of $20.35 million in liquidations, followed closely by OKX with $10.62 million. Other trading platforms like HTX and Bybit recorded $6.09 million and $1.73 million in liquidations, respectively. It should be noted that the majority of liquidations were from long positions, indicating a bearish trend on the market.

In terms of market performance, major assets have shown mixed results as they have started a consolidation trend. Bitcoin (BTC) is currently trading at $66,619, after a slight decrease of 1.22% over the past 24 hours. Ethereum (ETH) is trading at $2,574, with a more notable decrease of 2.34%. Consequently, the overall market capitalization remains under pressure due to extensive liquidations, raising concerns about future price stability.

Analysts predict several potential outcomes for the broader market. First, the significant number of liquidations could lead to increased volatility, especially if bearish sentiment continues to dominate. This could exacerbate market instability, driving prices down further. On the other hand, some experts suggest that the market may undergo a corrective phase, potentially creating buying opportunities for savvy investors.