The cryptocurrency market experienced a tumultuous day with drastic movements in the price of Bitcoin, leaving more than 65,600 traders in losses of a combined total of $150 million.
This event was triggered by a sudden pullback followed by an unexpected recovery in the price of Bitcoin.
According to data from CoinMarketCap, Bitcoin price initially fell to the $43,600 mark, only to quickly rebound towards $44,000.
This extreme volatility trapped numerous traders, most of whom were long positions, betting on a continued rise in price.
Surprisingly, around 70% of the registered liquidations corresponded to traders with long positions, totaling approximately 45,000 affected.
Additionally, another cryptocurrency, ORDI, ranked third in terms of liquidations, accumulating $19.55 million in a 24-hour period.
Unfortunately, traders with long positions continued to face difficulties as the Bitcoin price struggled to stay above $43,000.
THIS LIQUIDATION PATTERN REMAINED LED BY BITCOIN, ETHEREUM AND ORDI, SUGGESTING PERSISTENT VOLATILITY IN THESE ASSETS
Major exchanges Binance and OKX witnessed the majority of these liquidations, with $62 million and $50 million, respectively.
For its part, ByBit ranked third with $22 million in liquidations during the last day.
Bitcoin is currently in an attempt to hold support above $43,000, although the overall sentiment in the market remains tilted towards greed.
However, uncertainty remains, and if the volatility of Bitcoin’s rally continues, liquidations are likely to continue to rise.
This development highlights the volatile and high-risk nature of the cryptocurrency market, underscoring the importance of sound risk management strategies for investors.
The trend of massive liquidations illustrates how sudden price movements of assets like Bitcoin can trigger significant repercussions on the crypto ecosystem in a short period.