The cryptocurrency market slipped on Thursday after roughly $150 million in long positions were liquidated within an hour following high-profile talks between U.S. President Donald Trump and China’s Xi Jinping, dragging major tokens lower.
Key Takeaways:
- About $150 million in long liquidations hit the market within an hour after the Trump-Xi meeting was publicly discussed, triggering short-term panic-selling across major tokens.
- Bitcoin (BTC) saw a noticeable decline near $108K, while Ethereum (ETH) dropped to $3.8K mark, both showing 24-hour declines and neutral-to-slightly-bearish technical momentum.
- ****Momentum indicators such as RSI and MACD hint possible continuation of market consolidation.
The crypto market experienced a sudden pullback shortly after reports emerged detailing the Trump-Xi meeting held in Seoul. While the talks were unexpected to ease trade tensions, traders interpreted the tone as uncertain, triggering risk-off behavior across both traditional and digital assets. Watcher Guru, one of the first to break the story, highlighted the massive long liquidations on its recent post on X (formerly Twitter )after the Trump-Xi meeting.
FXStreet report noted that the liquidations were recorded within just an hour, suggesting a sharp market volatility. This was observed across well-known crypto exchanges like Binance and OKX, accelerated selling pressure as automated liquidations cascaded through crypto derivatives markets.
Liquidations Spark Broad-Based Market Pullback
The liquidation surge led to immediate price drops among major tokens. Bitcoin fell toward $108,000, sliding roughly 3.4% over the past 24 hours, while Ethereum slipped near $3,900, losing under 3.6%. Altcoins followed the same trend, with Solana (SOL) retreating to around $190 and XRP dropping below $2.49.
Technical Indicators Show BTC and ETH Remains in Consolidation Phase
At the time of writing (9:30AM UTC), Bitcoin (BTC) is trading at approximately $110,188, reflecting a 2.4% drop over the past 24 hours. The token peaked an intraday high around $113,536, as well as intraday lows near $108,201, which indicates its recent volatility. Meanwhile, Ethereum (ETH) is trading near $3,908.28, down 2.3% in the day with intraday high around $4,028.24 and intraday low near $3,854.53, according to CoinGecko.
Bitcoin’s RSI was at 48, showing a neutral reading and suggesting the market remains in a consolidation phase rather than entering oversold territory. Ethereum’s RSI stood at 46, also signaling weak momentum and lack of clear direction.
Analyst Caution Against Overreaction
Market observers see the decline as a typical example of how political developments can quickly spill into crypto investments. Analysts from several trading desks explained that such liquidations are often intensified by algorithmic trading systems that automatically close positions during sharp volatility spikes.
A derivatives analyst from CryptoQuant emphasized that the recent $150 million liquidation is not necessarily a sign of market fear, and it’s more about “leverage unwinding.” The same sentiment echoed across X (formerly Twitter), where traders pointed out that the crypto market’s open interest levels had risen significantly in the days leading up to the meeting, making it vulnerable to a squeeze once volatility hit.
What’s Next?
The post-meeting market decline highlights the ongoing sensitivity of the crypto ecosystem to geopolitical news and leveraged trading conditions. Although this massive liquidation event affected short-term momentum, technical indicators suggest a neutral setup rather than a bearish reversal conclusion.
For now, experts and analyst warn traders and investors that there are still chances of continued volatility. In coming days, this will be revealed if it’s either a temporary liquidity flush, or an introduction to a broader sentiment shift across global digital assets.
Summary
The market pulled back after roughly $150 million in long positions were liquidated within an hour following the Trump-Xi meeting, causing short-term selling across major tokens while indicators point to consolidation rather than a clear bearish reversal.
