The cryptocurrency market experienced a sharp price drop, leading to the liquidation of numerous positions. As a result, the total liquidation amount was around $300 million.
Sharp Drop in Bitcoin and Its Consequences
In recent hours, Bitcoin has seen a price drop of $4,000, triggering liquidations amounting to $300 million. This event highlights the high volatility of the market and shifts capital towards Ethereum and large-cap altcoins.
Short-term Price Changes in Cryptocurrencies
As a result of the liquidation, the Bitcoin price briefly fell to $113,000, causing anxiety among traders and investors, as well as an 11% decrease in 24-hour trading volume.
Analysis of Historical Liquidation Trends
Historically, sharp Bitcoin liquidations, such as those in May 2021 and June 2022, led to significant changes in the market. Experts note that there is a possibility of technical recovery and observe price gaps that are usually closed quickly.
The volatility of the cryptocurrency market has once again demonstrated its nature. The liquidation of long positions in Bitcoin not only changed the current situation but also left room for further price fluctuations.
