Big market liquidation in the previous 7 days? What's the reason behind this move🤔🤔🤔🤔🤔🤔
The market sentiment over the last 24 hours has shifted from extreme caution and "macro-chaos" to a fragile, cautious stabilization. While the early part of the week saw a "Sell America" panic, yesterday (January 23, 2026) marked a notable recovery for stocks, though crypto remains on edge due to high-leverage washouts.
- Crypto Market: The "Mechanical Unwind"
The sentiment in crypto is currently defensive and bearishly biased. The market experienced a massive "leverage flush" where billions were wiped out earlier in the week, and the recovery has been described as "sluggish."
Liquidation Volume: Over the last 24 hours, approximately $303 million was liquidated globally. Notably, in a recent one-hour window, $146 million in short positions were wiped out, suggesting a brief "short squeeze" as prices tried to stabilize.
Price Levels: Bitcoin is hovering around $89,500, struggling to reclaim the $90,000 psychological barrier. Ethereum is showing similar stagnation near $3,000.
Sentiment Driver: Analysts note that the narrative of Bitcoin as "digital gold" failed during this dip; instead, it traded strictly as a high-risk asset. Large investors ("whales") have been spotted expanding short positions, signaling they expect further volatility.
- Stock Market: Relief Rally
In contrast to the crypto gloom, the stock market sentiment yesterday was distinctly optimistic, driven by strong macroeconomic data and a cooling of trade tensions.
Index Performance: The S&P 500 rose by 0.5%, the Nasdaq by 0.9%, and the Dow Jones by over 0.6%.
Key Drivers: * GDP Growth: New data showed a robust 4.4% growth rate.
Tariff Relief: Sentiment improved significantly after President Trump indicated he would no longer pursue certain scheduled tariffs against European nations following meetings with NATO.
Earnings: Over 80% of companies reporting this season have beaten expectations, providing a "fundamental floor" for stock prices.
Comparison Summary
Feature Crypto Market Sentiment Stock Market Sentiment
Current Mood Cautious / Fragile Notably Higher / Optimistic
Main Catalyst Leverage unwinding & high yields Strong GDP & Tariff de-escalation
Risk Status Risk-Off (Investors fleeing) Risk-On (Buying the dip)
Top Concern Liquidations & Whale shorts Persistent PCE Inflation (2.8%)
Note: While stocks are rallying, the crypto market is still dealing with "thin liquidity" and the aftermath of a $1.8 billion liquidation event that occurred over the 48 hours prior.