Bitcoin's volatile movement over the past 24 hours resulted in more than $1 billion in liquidations, impacting over 156,000 traders worldwide. This event is considered one of the significant sell-offs since the FTX collapse in 2022.
According to Coinglass, nearly $900 million in Bitcoin positions were liquidated as the price fluctuated drastically, triggering a cascade of liquidations affecting longs and shorts. The most substantial single liquidation occurred on the OKX exchange.
Some analysts view this as a necessary correction in the Bitcoin bull market, with the long-term fundamentals of Bitcoin remaining strong. Speculation suggests that factors like profit-taking and large sell orders contributed to the massive sell-off.
The volatility also affected other major cryptocurrencies like Ethereum, with increased liquidation levels observed. Despite the market chaos, some large investors, known as whales, capitalized on the price dip by accumulating BTC, demonstrating the continued appeal of Bitcoin.
As traders adjust to these events, the market's attention remains on Bitcoin's potential to regain critical support levels around $97,000 to maintain its upward trajectory.
