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The crypto market faced price volatility, with $70 Billion wiped out in just 24 hours. Amid this intense bloodbath, Bitcoin (BTC) remains one of the best digital assets to accumulate.
Many view BTC as a hedge against inflation, combined with the increased institutional interest. This has helped push prices higher in the past.
Ethereum and Bitcoin Lead 24-Hour Crypto Market Liquidations
Crypto analyst That Martin Guy on X highlighted that crypto market liquidations reached $70 Billion within a single day. According to Coinglass data, Ethereum (ETH) and Bitcoin saw the highest liquidations over the past 24 hours.
ETH liquidations reached a total of $66.18 Million. Long positions accounted for $45.69 Million of that amount. Short positions made up the remaining $20.49 Million.
Similarly, Bitcoin saw its 24-hour liquidation trend result in a total loss of $51.59 Million for traders. Long position holders took the highest hit, with liquidations reaching $43.34 Million.
On the other hand, the remaining $8.25 million came from shorts. Other top cryptocurrencies that also suffered from the liquidations include Solana (SOL), Cardano (ADA), and Dogecoin (DOGE).
The latest market bloodbath comes despite recent efforts from the U.S. and UK governments to implement pro-crypto regulations. Both governments have launched a joint task force to coordinate digital asset regulation and boost innovation.
The task force is expected to improve links between the U.S. and UK capital markets to enable further cross-border capital raising. It also aims to focus on options for long-term collaborations in the crypto market.
Why Bitcoin Remains a Good Investment
Despite the recent volatility, many investors and analysts argue that Bitcoin remains a good crypto. A key reason for their argument is Bitcoin’s perceived hedge against inflation and currency devaluation, especially during economic uncertainty.
Indeed, Bitcoin is often likened to “digital gold” due to its fixed supply cap of 21 million coins. Another thing to note is that Bitcoin has historically recovered from major crashes.
Consequently, analysts often remain bullish even after sharp declines, citing the long-term growth potential of the leading coin.
Furthermore, institutional interest in BTC has also intensified. This signals increasing mainstream acceptance and future price growth potential. For instance, Bitcoin exchange-traded funds (ETFs) trading in the U.S. recently recorded weekly inflows amounting to $887 Million.
In addition, corporate Bitcoin investments have also increased in recent weeks. Strategy, the top Bitcoin corporate holder, recently acquired 850 BTC for $99.7 million, raising total holdings to 639,835 BTC.
Japanese-Metaplanet also added more BTC to its balance sheet. The firm bought an additional 5,419 BTC for $623 Million, pushing its total holdings to 25,555 BTC.
September Historical BTC Price Trend
According to CoinMarketCap data, Bitcoin is currently valued at $112,557, down 0.65% over the previous day. Market activity is also low, as seen by the 10.1% drop in daily trading volume to $48.9 Billion.
Nevertheless, Bitcoin’s historical performance in September raises an optimistic outlook. According to data from Cryptorank, BTC has historically closed September in green for the past two years.
In September 2023, BTC recorded 3.99% profits and 7.11% gains the following year. So far this month, the BTC gains have reached 4.01%.
Supporters of the Sparktember thesis claim history points to stronger quarters whenever September ends in the green zone. Staying above $109,000 through month-end is key. It could pave the way for more growth in late 2025.
However, it is essential to note that the Sparktember thesis is not guaranteed. Many factors, like global macroeconomics, political agendas, and investor sentiments, can influence BTC price in the long term.
