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From a 14-month low to a sharp rally triggers $740 million in liquidations

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From a 14-month low to a sharp rally triggers $740 million in liquidations

Bitcoin whiplashed on Tuesday, plunging to a 14-month low before rallying back above $76,000 as tech-sector turmoil sent markets spinning.

The largest cryptocurrency dropped to $72,900 during the early U.S. session — its weakest level since November 2024, when Donald Trump was elected. Then BTC has since rebounded 5% off the lows, climbing back to $76,800, before the advance faded again. Ethereum’s ether bounced 10% from session lows to above $2,300 before giving back some of the gains, according to CoinDesk data.

The rebound came as Congress reached a deal to end the partial government shutdown, which offered some near-term relief to markets.

Helping ease pressure on risk assets further was an appearance by Nvidia (NVDA) CEO Jensen Huang on CNBC, where he dismissed speculation about friction between the chipmaker and OpenAI. “There’s no controversy at all. It’s complete nonsense,” Huang said, reaffirming Nvidia’s commitment to invest in OpenAI’s next fundraising round. His comments came amid growing concerns over the stability of ChatGPT creator OpenAI, a key driver of sentiment in the AI-fueled tech rally.

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Still, the sharp drop in crypto left a trail of damage. Total liquidations across digital asset derivatives surged to $740 million over the past 24 hours, according to CoinGlass. Long positions, those betting on higher prices, bore the brunt of the wipeout with $287 million in BTC longs and $267 million in ETH longs being flushed.

Technical breach

Despite the rebound, bitcoin taking out the April 2025 “tariff tantrum” lows marked a key technical breakdown, raising the risk of a deeper correction.

Still, Benjamin Cowen, founder of Into The Cryptoverse analytics firm, said the overwhelming bearish sentiment might set the stage for a short-term countertrend rally. Historically, he noted, when bitcoin sweeps prior lows, it often triggers relief rallies.

He also warned that failure to bounce soon could make for “one hell of a midterm year,” referring to bitcoin’s past bear markets, such as 2022 and 2018, which also coincided with U.S. midterm elections.

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“I feel like the bear narrative has been really strong for a while, and so I would expect a countertrend rally soon so that it gives the bulls some hope for a while,” Cowen said in an X post.

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Crypto World

Aave Shutters Avara Brand and Family Crypto Wallet

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Aave Shutters Avara Brand and Family Crypto Wallet

Aave Labs says it is sunsetting its “umbrella brand” Avara in the company’s latest move to refocus on decentralized finance and simplify its branding.

Aave founder and CEO Stani Kulechov posted to X on Tuesday that Avara, a company encompassing projects including the Family crypto wallet and previously the social media platform Lens, “is no longer required as we go all in on bringing Aave to the masses.”

Kulechov said the Apple iOS-based Family crypto wallet was also being wound down as the team has “learned that onboarding millions of users requires purpose-built experiences, such as savings, rather than generic, open-ended wallet experiences.”

The move marks Aave’s latest effort to refocus on products such as its flagship lending protocol as the project handed stewardship of Lens to the Mask Network last month, with Kulechov saying Aave’s role in the protocol would be reduced to an advisory role so it can focus on DeFi.

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Source: Stani Kulechov

Kulechov said in his latest post that Aave was “now united as one team of world-class designers, engineers, and smart contract experts, aligned around a single mission: bringing DeFi to everyone.”

All future projects under Aave Labs

Avara said in a blog post that “all current and future products, including the Aave App, Aave Pro, and Aave Kit, will operate under Aave Labs” to simplify the brand.

It added that accounts linked to the Family wallets “will continue as core infrastructure within Aave Labs products,” but the iOS app would be wound down over the next year.

No new users will be onboarded to the app from April 1, and existing users can continue using the app until April 1, 2027, and will continue to have full access to their funds on Aave’s website.

Related: There is no trust in DeFi without proper risk management

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Aave is the biggest DeFi protocol with $30 billion in total value locked, nearly $9 billion more than the next largest project, the staking protocol Lido, which has $21.7 billion in value locked, according to DefiLlama.