Liquidation Surge
Cryptocurrency investors holding long positions have faced a massive liquidation of $365 million in the past day, as Bitcoin’s price plummeted below $66,000.
Derivative Market Meltdown
The cryptocurrency derivative market has witnessed significant liquidations, with over $461 million wiped out in the last 24 hours. Long investors bore the brunt of the pain, with $365 million in contracts forcibly closed.
Long Squeeze
The liquidation event was dominated by long traders betting on a bullish outcome, resulting in a “long squeeze.” A sharp price swing triggered a cascade of liquidations, fueling the price drop further.
Key Liquidated Assets
Bitcoin accounted for the largest share of liquidations ($137 million), followed by Ethereum ($100 million). Solana and Dogecoin also saw significant liquidations ($15 million each).
Volatility and Leverage
Mass liquidations are common in the cryptocurrency market due to high volatility and the availability of excessive leverage. Uninformed trading in the derivative market can be particularly risky.
Bitcoin’s Plunge
Bitcoin’s latest drop has brought its price down to around $65,200.
