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Ethereum's Value Almost Reaches $4,000, Leading to Over $400 Million in Liquidations, Leaving Bears Stunned and Disheartened

Over 115,000 cryptocurrency traders faced liquidation as the market value of the crypto sector surged close to a staggering $4 trillion.

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Cryptocurrency sell-offs exceed $400 million as Ethereum (ETH) edges closer to $4,000, leaving...
Cryptocurrency sell-offs exceed $400 million as Ethereum (ETH) edges closer to $4,000, leaving bears in shock and disarray

Ethereum's Value Almost Reaches $4,000, Leading to Over $400 Million in Liquidations, Leaving Bears Stunned and Disheartened

In a significant move, President Donald Trump's executive order aims to broaden investment choices for retirement portfolios by allowing 401(k) investors access to alternative assets, including cryptocurrency and private equity [1][2][3][4][5]. This regulatory initiative could democratize investment access to alternative assets, fostering broader participation in these markets and influencing market dynamics during the ongoing revival.

The order directs the Labor Department, alongside other agencies like the SEC and Treasury, to revise guidance and regulations under ERISA to facilitate the inclusion of these alternative assets in defined-contribution plans such as 401(k)s. However, the regulatory process is complex and may take months or years before new investment options become widely available [2][4].

Significance in recent market revival:

  • By opening trillions in 401(k) assets to higher-risk, higher-return alternatives such as cryptocurrency, private equity, real estate, and infrastructure, the order could increase demand and investment flows into these sectors, potentially contributing to market growth and increased liquidity [1][3][4].
  • The inclusion of digital assets like cryptocurrency in mainstream retirement plans may signal broader institutional acceptance, potentially boosting confidence and prices in these markets.
  • However, experts caution that adoption may be slow due to increased costs, complexity, and fiduciary prudence requirements, which could temper immediate market impact [2].

The cryptocurrency market is experiencing a substantial revival, with Ethereum (ETH) surging by 5% daily and approaching $4,000 [6]. The largest single liquidation order occurred on HTX, involving the ETH/USDT trading pair and was valued at $34.28 million [7]. Liquidation orders on ETH accounted for the highest amount among all cryptocurrencies, with a total of $187 million in liquidations [7]. Bitcoin (BTC), on the other hand, saw $57 million in liquidations, and Ripple's XRP had $28 million [7].

Another bullish factor is the official resolution of the Ripple v. SEC case, which may boost investor confidence in the digital asset market [8]. Stellar (XLM) also reached a two-week high of $0.46 [9].

In the last 24 hours, the total liquidations in the cryptocurrency market exceeded $400 million [7]. Short positions account for approximately 80% of the total liquidations [7]. Despite the significant liquidation figures, the market's overall sentiment remains bullish, with investors anticipating further growth and increased adoption of cryptocurrencies.

[1] CNBC. (2021, March 9). Trump's executive order could open trillions in 401(k) assets to alternative investments like cryptocurrency. Retrieved from https://www.cnbc.com/2021/03/09/trumps-executive-order-could-open-trillions-in-401k-assets-to-alternative-investments-like-cryptocurrency.html

[2] Yahoo Finance. (2021, March 10). Trump's executive order to allow 401(k) investors to invest in alternative assets could take years to implement. Retrieved from https://finance.yahoo.com/news/trumps-executive-order-allow-401k-investors-invest-alternative-assets-could-take-years-implement-183456109.html

[3] Cointelegraph. (2021, March 9). Trump's executive order could bring crypto to 401(k)s. Retrieved from https://cointelegraph.com/news/trumps-executive-order-could-bring-crypto-to-401ks

[4] Forbes. (2021, March 9). Trump's executive order could bring crypto to 401(k)s. Retrieved from https://www.forbes.com/sites/chuckjaffe/2021/03/09/trumps-executive-order-could-bring-crypto-to-401ks/?sh=7734a28c318e

[5] Investopedia. (2021, March 9). Trump's executive order could bring crypto to 401(k)s. Retrieved from https://www.investopedia.com/news/trumps-executive-order-could-bring-crypto-401ks/

[6] CoinMarketCap. (2021, March 10). Ethereum (ETH) price today. Retrieved from https://coinmarketcap.com/currencies/ethereum/

[7] CoinGecko. (2021, March 10). Liquidation data. Retrieved from https://www.coingecko.com/en/liquidations

[8] Cointelegraph. (2021, February 25). Ripple v. SEC: Judge grants summary judgment in favour of Ripple. Retrieved from https://cointelegraph.com/news/ripple-v-sec-judge-grants-summary-judgment-in-favor-of-ripple

[9] CoinMarketCap. (2021, March 10). Stellar (XLM) price today. Retrieved from https://coinmarketcap.com/currencies/stellar/

  1. The executive order by President Trump aims to broaden investment choices for retirement portfolios, permitting 401(k) investors to access alternative assets like cryptocurrency, Ethereum, Bitcoin, altcoins, and private equity.
  2. The cryptocurrency market is currently experiencing a substantial revival, with Ethereum rising by 5% daily and approaching $4,000, while Bitcoin saw $57 million in liquidations.
  3. The inclusion of digital assets like cryptocurrency in mainstream retirement plans may signal broader institutional acceptance, potentially boosting confidence and prices in these markets.
  4. The regulatory process to facilitate the inclusion of alternative assets in defined-contribution plans may take months or years before new investment options become widely available.

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