Today, the cryptocurrency market is buzzing with activity as Bitcoin showcases significant volatility. Just within the last hour, Bitcoin surged and then quickly dropped, catching traders off guard.

Massive Liquidations

According to CoinGlass, over the last four hours, approximately $186 million was liquidated due to sudden price movements. The total liquidation amount has reached around $304 million. Among these, long position holders faced staggering liquidations of $171 million, while short position holders experienced losses of $132 million. Notably, the most significant short liquidations occurred at the $66,700 level today.

Bitcoin and Ethereum Lead Liquidations

Bitcoin was at the forefront of liquidation activity over the last 24 hours. BTC positions accounted for $73.68 million in liquidations, with $50.16 million in short positions and $23.51 million in long positions closed. Ethereum also saw significant liquidation volume, totaling $62.27 million, with long positions at $45.86 million and short positions at $19.41 million wiped out.

The Cause of Liquidations

The sharp swings in Bitcoin’s price illustrate the market volatility. Traders placed bets on further rises or declines, only to be caught in reversals, causing liquidations across the board. This unpredictability affected both bullish and bearish traders.

At the time of writing, Bitcoin is trading near $65,000, with traders remaining cautious as they await market stabilization. The fluctuations remind of the risks involved in leveraged trading and the need for careful position management in volatile environments.