The cryptocurrency market experienced liquidations of US$1.28 billion in the past 24 hours, with over 368,000 traders affected, according to Coinglass.

Long positions accounted for US$816 million of the total, while short positions reached US$307 million.

Bitcoin, which recently peaked at US$109,000, was trading at US$103,500, down 2.2% from the previous day.

Solana and Cardano also saw significant drops of 9% and 5%, respectively.

Market analysts, including Lukman Otunuga of FXTM, warn that further volatility could arise due to reactions to US economic data and Federal Reserve policies.

Speculation around a potential US Bitcoin Strategic Reserve has added uncertainty. However, experts, including Bitget CEO Gracy Chen, suggest that it remains speculative and would require major regulatory coordination.