Bitcoin Crash: $712M Crypto Liquidations as BTC Falls Below $105K
Note: This post may contain affiliate links, and we may earn a commission (with No additional cost for you) if you make a purchase via our link. See our disclosure for more info. The crypto world is constantly changing. This content is for informational purposes only and not financial, legal, or professional advice So, please verify the info on the cryptocurrency provider’s websites.
The cryptocurrency market experienced a significant downturn, resulting in over $712 million in liquidations within 24 hours, with $477 million occurring in the final 12 hours. This event, termed a “long squeeze,” disproportionately affected long investors (bulls) who bet on rising prices, accounting for over 90% of the liquidations. Bitcoin and Ethereum bore the brunt of the losses, with $221 million and $116 million in liquidations respectively. Surprisingly, Solana saw $32 million in liquidations, exceeding XRP despite its lower market capitalization, potentially due to a steeper price decline. The Bitcoin price briefly dipped below $105,000 before recovering slightly to around $105,800. This downturn follows a period of high whale activity, with a surge in large transactions (over $100,000 and $1 million) earlier in May coinciding with Bitcoin's peak around $112,000. On-chain analytics suggest this whale activity may have contributed to profit-taking and the subsequent price drop. The volatility highlights the risks inherent in the cryptocurrency market, particularly for leveraged positions. The rapid cascade of liquidations underscores the interconnectedness of crypto assets and the potential for significant losses during periods of market uncertainty. The event serves as a reminder of the speculative nature of cryptocurrency investments and the importance of risk management strategies for investors.
(Source: https://www.newsbtc.com/bitcoin-news/crypto-bulls-644m-bloodbath-bitcoin-dips-105000/)
