The crypto market has faced a major wave of liquidations, with more than $744 million being erased within the last 24 hours, according to data from Coinglass. Over 163,000 traders saw their positions wiped out, exceeding the population of cities like Kansas City or Springfield.
Crypto Market Liquidations Surge
Within just four hours, liquidations exceeded $442 million, highlighting the intense volatility in the market. The largest recorded single liquidation occurred on Bitfinex, where one position worth approximately $8.21 million was liquidated, as per Coinglass.
Bitcoin, the leading cryptocurrency, saw a sharp decline, hitting a multi-month low of $82,455. Earlier today, Bitcoin’s price fell from $64,500 to $61,200 within an hour, causing a cascade of forced liquidations. CoinMarketCap data at the time of writing confirmed this sharp drop, leading to significant losses for traders with leveraged positions.
The BTC/USDT trading pair experienced the most severe impact, with over $150 million liquidated as traders were caught off guard by the rapid price movement. In total, the cryptocurrency market saw $255 million in liquidations within a single hour.
Leveraged traders, particularly those holding long positions, suffered substantial losses as Bitcoin’s rapid price drop triggered automatic liquidations across multiple exchanges. Such price movements often lead to increased volatility as liquidation events further fuel downward pressure on asset prices.
This liquidation event highlights the inherent risks in leveraged crypto trading, where traders borrow funds to amplify their positions. A sudden price drop can quickly lead to forced liquidations, resulting in significant financial losses. The recent market downturn underscores the fragility of highly leveraged positions and the rapid chain reactions that can occur when price levels shift unexpectedly.
Also Read: Bitcoin Price Historical Pattern Hints at Rebound Timeline
