FameEX Hot Topics | BTC Drop Below Critical Threshold Triggers $1B in Leveraged Crypto Position Liquidations

Over the past 24 hours, more than $1 billion in cryptocurrency positions were wiped out as Bitcoin’s price dropped below the $99,000 mark. This marked the first time in over six weeks that bitcoin had fallen below this key level, triggering a wave of liquidations across the market.

According to Coinglass liquidation data, a total of $1.03 billion in leveraged positions were liquidated within a single day. Out of the total, $921.39 million was linked to long positions, while $108.75 million came from short positions. The significant losses from long positions suggest that many traders had bet on bitcoin's price continuing to rise, only to be caught off guard by the sudden downturn.

In the last 12 hours, $409.63 million worth of positions were cleared, followed by another $350.43 million in the last 4 hours. This rapid sequence of liquidations highlights the intense volatility that characterized the crypto markets over the weekend, with prices fluctuating sharply.

The total number of liquidations was about 240,979 trades, as per Coinglass data. The large majority of these were long positions, reflecting the dominant sentiment of traders who had expected bitcoin to continue its upward momentum. However, the sharp drop caught many off-guard, leading to widespread losses.

The intense market movements were partly driven by growing geopolitical and macroeconomic tensions, which affected investor sentiment. As bitcoin and other cryptocurrencies have shown increased sensitivity to these external factors, the rapid volatility served as a reminder of the risks involved in highly leveraged trading.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.