The cryptocurrency sector experienced significant liquidations due to recent market volatility. Bitcoin's price rebounded above $63,000 after the US Federal Reserve announced a cutback on interest rates. The digital asset sector saw gains following Bitcoin's surge, with altcoins like Solana and Avalanche outperforming.
The derivatives market witnessed $201 million in liquidations in the last 24 hours, with $147 million resulting from short contracts. This short squeeze occurred because of the notable surge in Bitcoin and other cryptocurrencies.
Bitcoin led the liquidations with $78 million, followed by Ethereum with $36 million and Solana with $11 million. Such volatility and speculation, including the use of leverage, often result in large-scale liquidations.
