The cryptocurrency market witnessed a dramatic shift as Bitcoin triumphantly broke through the $103,000 barrier, triggering a massive $900 million in liquidations across the crypto ecosystem within just 24 hours.

Market Liquidation Surge Follows Bitcoin’s Remarkable Rally

This substantial liquidation figure represents a staggering 200% increase compared to the previous day, according to data from Coinglass. Bitcoin short positions alone accounted for $321 million in forced exits as bearish traders faced the consequences of betting against the leading cryptocurrency’s upward momentum.

Simultaneously, open interest in the crypto derivatives market expanded by 5% to reach $133 billion, signaling an influx of new leveraged positions entering the market. The average cryptocurrency relative strength index (RSI) has climbed to 70, typically considered an indicator of overbought market conditions.

Crypto Market Valuation Reaches Impressive Heights

The recent liquidation cascade emerged following a swift market recovery that pushed the total cryptocurrency market capitalization to $3.3 trillion—its highest level since early March. This resurgence coincides with renewed risk-on sentiment spreading across global financial markets.

Bitcoin reached an impressive peak of $103,460 during Friday’s Asian trading session, marking a robust 6% gain within a 24-hour period. Ethereum led the altcoin market’s recovery, surging more than 20% to reclaim the $2,200 level for the first time in two months. Other major cryptocurrencies followed suit, with Solana and XRP posting gains of 8% and 5%, respectively.

Geopolitical and Macroeconomic Catalysts Fuel Crypto Momentum

A tentative trade agreement between the United States and United Kingdom, which President Donald Trump hinted at on May 8, appears to have ignited the crypto rally while injecting fresh optimism into international markets. This positive development comes despite the Federal Reserve maintaining interest rates during its May 6 meeting.

Market expectations remain focused on monetary policy easing, with the CME FedWatch tool indicating traders are pricing in a 70% probability of a rate cut by July and a 95% likelihood of at least one reduction by October.

On-Chain Metrics Reveal Growing Investor Confidence

On-chain data further supports the bullish outlook as Bitcoin’s Realized Cap—a metric reflecting the total capital invested based on most recent price movements—reached a new all-time high of $890.7 billion. According to CryptoQuant contributor Carmelo Alemán, this marks the third consecutive weekly record for this metric.

This sustained growth in Realized Cap demonstrates a consistent accumulation trend among both short-term and long-term Bitcoin holders, reinforcing underlying market strength.

Cautionary Notes Amid Bullish Crypto Sentiment

While overall sentiment remains strongly positive, market analysts advise some degree of caution. Analytics firm Santiment reported that Bitcoin’s breakthrough above the psychologically significant $100,000 level is attracting substantial retail attention—a phenomenon that has historically coincided with local market tops.

Meanwhile, Real Vision CEO Raoul Pal suggests that Bitcoin’s market dominance may have peaked, based on DeMark indicator readings. If accurate, this could signal the beginning of what Pal describes as the “Banana Zone”—a period characterized by exceptional gains across the broader altcoin market.

Should the current momentum continue, cryptocurrency markets appear poised for their next major upward movement phase, potentially creating additional opportunities across the broader digital asset ecosystem.

Disclaimer: This article is for informational purposes only and does not constitute financial investment advice. Cryptocurrency investments are subject to high market risk. The volatile nature of digital assets means prices can fluctuate dramatically in short periods, potentially resulting in significant losses. Always conduct thorough research and consider consulting with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results, and you should never invest more than you can afford to lose.