Key Points
- Bitcoin’s price dropped below $68,000, sparking a surge in long liquidation.
- The broader crypto market saw over $667 million in liquidated long positions within 24 hours.
Bitcoin’s value took a dip under the $68,000 threshold during early Friday trading, following a previous all-time high of over $73,000. This price fluctuation triggered a significant increase in the liquidation of leveraged Bitcoin positions.
The leading cryptocurrency’s worth fell by more than 8% within a day, with a trading value of $67,016 at 5:40 a.m. ET. This price correction resulted in a notable liquidation of long positions on centralized exchanges.
Impact of Volatility
The instability led to the liquidation of over $278 million in Bitcoin positions, with the majority ($225 million) being longs, based on CoinGlass data.
Ethereum (ETH), the second-largest cryptocurrency, also saw an 8% decrease over the same period, currently priced at $3,662 at 5:40 a.m. ET. Contrarily, SOL, Solana network’s native coin, slightly increased by 0.5% during this period.
Market-Wide Liquidations
The entire crypto market witnessed over $667 million in long position liquidations in the past day, contributing to a total of $809 million in liquidations across various centralized exchanges.
Liquidations occur when a trader’s position is forcibly closed due to insufficient funds to cover losses. This typically happens when market movements are unfavorable to the trader’s position, leading to the depletion of their initial margin or collateral.
