The crypto market experienced a sharp decline on Friday, resulting in liquidations of over half a billion dollars in long positions. Bitcoin fell below $116,000 amid a broader market downturn.
Key Facts about Liquidations
According to CoinGlass data, $585.86 million worth of long positions were liquidated, with Bitcoin accounting for $140.06 million as it dropped 2.63% to $115,356. Ether also faced sharp liquidations of $104.76 million as its price fell 1.33% to $3,598. Dogecoin recorded the largest percentage decrease among the top 10 cryptocurrencies, plunging 7% to $0.22, triggering $26 million in liquidations.
Market Sentiment Overview
The sudden downturn was described by crypto trader Ash Crypto as a "pure leverage flush." Many traders went long after seeing a significant ETH price increase, leading to heavy liquidation by market makers. In total, 213,729 traders were liquidated during the market drop, highlighting high leverage levels amid bullish momentum that had previously pushed Bitcoin to a new all-time high of $123,100 on July 14.
Future Prospects of the Crypto Market
Despite the liquidations, many analysts maintain a positive outlook for the market. Galaxy Digital CEO Michael Novogratz stated that he expects Ether to reach $4,000 amid rising institutional adoption. Bitfinex analysts noted that Bitcoin's next major target could be $136,000 if the current uptrend continues. However, traders are exercising caution, with a potential return to Thursday’s price level of $119,500 putting approximately $3.07 billion worth of short positions at risk of liquidation.
The cryptocurrency market continues to exhibit high volatility, and while liquidations were significant, many market participants remain optimistic about future growth.
