Bitcoin (BTC) Market Corrected, Liquidating $521M in Long Positions

The cryptocurrency market, led by Bitcoin, underwent a slight correction on Monday, May 12. While analysts anticipated a pullback after the latest price surge and tariff news from the U.S. triggered the downturn, BTC is now seen to be recovering.

Crypto market corrects as $521M in long positions liquidated, while $SPX set to move higher after news that the U.S. and China had agreed to a 90-day tariff reduction.

Market Cap: $3.45T

24h Liquidation: $721.0M

Fear & Greed Index: 70 (Greed)

The good Monday (May 13) morning began with stellar news for the stock market, as the U.S. and China reached an agreement to reduce tariffs in a 90-day period. However, paradoxically, this news also triggered a swift crypto market correction, with a significant $521 million in long positions liquidated.

CoinMarketCap’s data at the time shows that the total cryptocurrency market capitalization dropped to $3.25 trillion after reaching a season’s high of $3.37 trillion.

Top Cryptocurrency Price Movements

Not just Bitcoin, other top cryptocurrencies also experienced pullbacks. Ethereum (ETH) price lost 8%, dropping from a $2,625 local high to $2,407 in less than 24 hours.

CoinMarketCap data at 07:38 (GMT+7) on May 13 shows that XRP, BNB, and Solana also experienced pullbacks. However, all the listed cryptocurrencies maintained bullish sentiments and have since bounced off support levels to signify existing bullish momentum in the altcoin market.

For instance, Bitcoin has been trading around $102,700 at the time of writing, reflecting a 1.75% recovery from Monday’s low, while Ethereum traded for $2,455, confirming an underlying bullish momentum in the cryptocurrency’s ecosystem.

At the same time, the crypto market’s Fear and Greed Index is 71, highlighting a slightly greed sentiment among participants. However, it also reflects an existing bullish appetite, considering the greed sentiment is not extreme.

Experienced Traders May Restock Portfolios

Corrections and pullbacks are common in the crypto market, especially during significant bull runs. They occur when traders sell their assets for profit or out of fear of a potential market reversal.

Specific triggers often initiate pullbacks, like the highlighted 90-day tariff reduction agreement between the U.S. and China in this instance. However, experienced traders use the opportunities to restock their portfolios, buying digital assets at lower prices and preparing for more profitable adventures in a sustained bull run.