Traders Lose $1 Billion As Volatility Erupts
Bitcoin (BTC) Sees Extremes volatility Over the past 24 hours, crypto markets have been rocked. The flash crash triggered more than $1 billion in liquidations, one of the largest sell-offs since FTX’s 2022 crash.
Coinglass data shows that nearly $900 million in Bitcoin positions were liquidated as the price plummeted from $100,000 to $90,000 before rebounding to $97,000.
Bitcoin marks largest multi-year liquidation event
The dramatic liquidation cascade affected more than 156,000 traders globally, with $8,168.19 million long and $279,631 long shorts Blown out of the water. According to Coinglass, the largest single liquidation occurred in OKX Exchange.
Analysts compare it to FTX crisis. McKenna, a popular voice in the crypto community, said this is the largest liquidation event since FTX’s bankruptcy. Several other community members supported this sentiment.
“Spot buyers are stepping in now, hanging on to the liquidation cascade,” McKenna famous.
To make matters worse, Web3 data analysis tool Lookonchain Highlight Mt. Gox moved 3,620 BTC worth $352.69 million to two new wallets. The trade occurred just hours after the defunct exchange relocated US$2.43 billion Bitcoin was transferred to unknown wallets after its price crossed the $100,000 milestone.
Speculation about whether the U.S. government might sell off Bitcoin during this period has further fueled market uncertainty.
“Did the US government push the sell button on BTC sent to Coinbase?” one user joke.
Despite these transactions, several factors are driving the massive liquidation. bein encryption Profit taking confirmedlarge sell orders at key milestones, and over-leveraged positions are all significant contributors. Many traders rely on borrowed funds to make bets Bitcoin continues to risethey are at risk when prices fall.
Jacob King, a financial analyst at WhaleWire, criticized overleveraged retail investors for opening long positions at all-time highs.
“This is what happens when retail investors succumb to FOMO and open leveraged long positions at all-time highs, while whales sell off their holdings,” King wrote.
Whales take advantage of Bitcoin dip
Despite the chaos, some big investors see opportunity. Blockchain analytics firm Lookonchain revealed that during the sharp drop, a whale purchased 600 BTC worth $58.85 million. This brings their total two-week accumulation to 1,300 BTC, worth $127 million. This kind of opportunistic buying demonstrates Bitcoin’s appeal even amid turmoil.
“After BTC fell below $100,000, a whale seized the opportunity and bought 600 BTC worth $58.85 million! In the past two weeks, this whale accumulated a total of 1,300 BTC worth $127 million.” Lookonchain report.
Despite the liquidation, some analysts believe the event was a necessary correction for the Bitcoin bull run and could mark a short-term bottom. Others believe that long-term fundamentals remain intact, as evidenced by a resumption of whale activity and steady accumulation.
Broader crypto markets echo Bitcoin’s volatility, Ethereum and other major coins also experienced higher levels of liquidation. As traders monitor these developments, focus turns to Bitcoin’s ability to regain key support around $97,000 and sustain its historic rise.
According to BeInCrypto dataAs of this writing, Bitcoin is trading at $98,404, down 4% since Friday’s open.
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