Bitcoin and Ethereum Experience Pullback from Record Highs, $500 Million in Long Positions Liquidated

Bitcoin (BTC) and Ethereum (ETH), two of the biggest players in the cryptocurrency market, have retreated from their recent all-time highs, leading to the liquidation of approximately $500 million (€712.5 billion KRW) in long positions. This phenomenon reflects a correction phase, which analysts attribute to the natural volatility observed in the aftermath of rapid market rallies.

Within the past 24 hours, Bitcoin's price has fallen 1.2%, now trading about 3% below its record high of $126,080, achieved earlier this week. Ethereum's downward movement has been more pronounced, with its value dropping by 4.6%, leaving the cryptocurrency trading at $4,492.

Leveraged Liquidations Total $635 Million in 24 Hours

Recent data from Coinglass reveals that a total of $635 million (€904.9 billion KRW) worth of leveraged positions in digital assets were liquidated over the past 24 hours. Of this, long positions accounted for $489 million (€696.9 billion KRW), reflecting significant losses for traders who had bet on continued upward price momentum.

Ethereum led the liquidation charts during this period, with $142 million (€202.4 billion KRW) wiped out, followed by Bitcoin at $114 million (€162.5 billion KRW). These figures underscore the heightened risk associated with leveraged trading in the face of price corrections.

Key Factors Behind the Market Pullback

Ryan Lee, Chief Analyst at Bitget, analyzed several contributing factors to this sell-off. He highlighted profit-taking following a recent 10% surge in cryptocurrency prices, a rebound in gold, and the strengthening U.S. dollar as drivers behind the market's downturn.

"With persistent macroeconomic uncertainty, some funds are reallocating toward gold, lowering risk appetite for digital assets," Lee noted. This shift toward traditional safe-haven assets reflects the cautious sentiment of investors amid fluctuating global conditions.

The strengthening of the U.S. Dollar has been pivotal in this market environment. TradingView data shows the U.S. Dollar Index (DXY) climbed to 98.989 on November 7, rebounding sharply from 96.218 in September, signaling renewed demand for the greenback.

Market Correction May Create Room for Bitcoin Gains

Despite the recent turbulence, Lee characterized the downturn as a "healthy correction" rather than a reversal of the broader upward trend. He forecasts that Bitcoin could stabilize after an additional 3–4% dip and, if it breaches the $126,000 resistance level, may rise to a range of $132,000–$135,000.

Sentiment on predictive platforms like Myriad, operated by Decrypt's parent company Dastan, echoes this optimism. According to user activity, 57% of participants are betting on Bitcoin climbing to $140,000 rather than dipping to $110,000, suggesting that many traders remain confident about Bitcoin’s future growth trajectory.

Long-Term Bullish Indicators Remain Strong

While short-term volatility remains a key feature of the cryptocurrency market, industry experts regard Bitcoin’s long-term fundamentals as increasingly solid. As fiscal deficits grow and trust in centralized financial systems declines, Bitcoin is emerging as a potential hedge against currency debasement and economic instability.

Austin King, co-founder of Nomina, a DeFi-integrated trading platform, emphasized the continued relevance of Bitcoin as protection against geopolitical uncertainties. "The fourth quarter is shaping up to be a very exciting period for the digital asset ecosystem as a whole," King remarked, reinforcing optimism for the long-term outlook of cryptocurrency markets.

Despite current fluctuations, Bitcoin and Ethereum remain at the center of growing investor interest, evolving as alternative stores of value in an increasingly uncertain economic era. With robust fundamentals and bullish sentiment prevailing in the broader market, cryptocurrencies continue to offer significant opportunities for traders and long-term investors alike.