Bitcoin Price Drops Over 8% in 24 Hours
The value of Bitcoin, the largest cryptocurrency by market cap, has experienced a significant drop of over 8% in the past 24 hours. As of 5:40 a.m. ET, Bitcoin is trading at $67,016. This price correction has led to the liquidation of more than $278 million in Bitcoin positions on centralized exchanges.
Volatility Leads to Liquidation of Long Positions
The recent volatility in the crypto market has resulted in the liquidation of a significant number of long positions. According to CoinGlass data, a total of $278 million worth of Bitcoin positions have been liquidated, with the majority ($225 million) being longs. This means that traders were forced to close their positions due to a lack of funds to cover losses.
- The liquidation of long positions on centralized exchanges contributed to the overall market liquidations.
- The total amount of liquidated long positions in the last 24 hours reached over $667 million.
- The combined liquidations across various centralized exchanges amounted to $809 million.
Liquidations occur when market movements are unfavorable to traders’ positions, causing their initial margin or collateral to be depleted.
Ethereum and Solana Also Experience Downturn
Alongside Bitcoin, Ethereum (ETH), the second-largest cryptocurrency, has also experienced an 8% downturn in the past day. As of 5:40 a.m. ET, Ethereum is trading at $3,662.
However, Solana’s native coin (SOL) has managed to defy the downtrend by gaining a muted 0.5% during the same period. The Solana network has shown resilience in the face of market volatility.
Liquidation Data Highlights
- The value of Bitcoin has decreased by over 8% in the past 24 hours, trading at $67,016.
- Over $278 million worth of Bitcoin positions have been liquidated on centralized exchanges.
- The majority ($225 million) of the liquidated positions were longs.
- The overall crypto market experienced over $667 million in liquidated long positions in the last 24 hours.
- A total of $809 million in liquidations occurred across various centralized exchanges.
Hot Take: Market Volatility Triggers Liquidations
The recent drop in Bitcoin’s price highlights the volatility of the crypto market. Market movements can result in significant losses for traders, leading to forced liquidations when their positions become unsustainable. The liquidation of long positions on centralized exchanges has contributed to the overall market liquidations, with over $667 million worth of positions being closed in the past 24 hours. This serves as a reminder for crypto investors to carefully manage their risk and be prepared for market fluctuations.
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