Recent fluctuations in Bitcoin's price have led to significant consequences for the cryptocurrency market, including mass trader liquidations.
Bitcoin's Recovery and Subsequent Collapse
Bitcoin's price reached a weekly high of $113,500 after bulls defended the support level around $107,000. However, this rise quickly ended as the price was sharply rejected, leading to a drop of over $3,000 within an hour.
Impact on Other Cryptocurrencies and Markets
Other altcoins also experienced sharp declines following Bitcoin's drop. For instance, Ethereum's price fell from over $4,400 to $4,200. This decline was due to liquidations among leveraged traders.
Consequences for Traders and the Liquidation Market
According to CoinGlass data, over 83,000 traders were liquidated in the past 24 hours, totaling approximately $330 million. This includes $119 million in long positions for Bitcoin and $116 million for Ethereum. The largest liquidation was over $15 million on the OKX platform.
The sharp decline in Bitcoin highlights the volatility of the cryptocurrency market and the risks associated with leveraged trading. Traders should exercise caution in times of high volatility.
