Bitcoin’s Sudden Crash Resulted In Over $400 Million In Liquidations

In the last 24 hours, volatile market conditions caused more liquidations on centralized exchanges following Bitcoin’s (BTC) sudden crash to below $67,000, affecting the entire crypto market. 

According to data from CoinGlass, centralized cryptocurrency exchanges witnessed liquidations amounting to over $427 million in the last 24 hours. Among these liquidations were from long positions, amounting to approximately $342 million.

Bitcoin positions got the most impact, facing over $130 million in liquidations over the last 24 hours, $90 million of which were also from long positions. 

Liquidations often happen when a trader’s position is forcibly closed due to a lack of funds to cover losses. This occurs when market movements go against the trader’s position, causing their initial margin or collateral to be exhausted. 

As Bitcoin’s price crashed below $67,000 causing massive liquidations of long positions, it remains in the bull market. For investors who might be feeling hesitant about Bitcoin at this stage, remember that Bitcoin is still in a bull market. This means that despite the volatility, it remains firm, and recovers through sudden fluctuations. In fact, this could be a good opportunity to buy more Bitcoins as prediction sees a potential rally due to the upcoming Bitcoin Halving event. 

An encouraging factor to consider is that the recent price pullbacks have resulted in a complete reset of both funding rates and open interest. Those trading on leverage — which contributed to the market’s enthusiasm — have been liquidated, resulting in losses amounting to around $422 million. This reset indicates that the market is now poised for a potential rebound, which could occur anytime soon. 

At this time of writing, Bitcoin is down by 5.19%, trading at $65,873.84 with a 24-hour trading volume of $42.68 billion. Its total market cap also went down by 5.44% to just $1.29 trillion.