The cryptocurrency market experienced a significant downturn over the weekend, with over $620 million in leveraged positions liquidated within a 24-hour period. This sharp correction was primarily driven by Bitcoin's (BTC) price dropping to as low as $80,000, triggering widespread margin calls and heightened market volatility.
Key Highlights:
Total Liquidations: Approximately $620.5 million in leveraged positions were liquidated across major exchanges.
Trader Impact: Over 225,000 traders faced liquidations, with long positions accounting for $529.4 million and short positions for $91.1 million.
Bitcoin's Role: BTC led the liquidation wave, with $239.5 million in positions wiped out, including a single $32 million BTC/USDT position on Binance .
Ethereum's Position: ETH followed, with $108.5 million in liquidations, as its price fell to around $2,062, marking a 5.3% decline over the day .
Market Analysis:
The sudden drop in Bitcoin's price was unexpected, especially following President Donald Trump's executive order establishing a Strategic Bitcoin Reserve. Contrary to anticipated bullish momentum, the order coincided with increased selling pressure, exacerbated by escalating recession fears. Analysts, including former BitMEX CEO Arthur Hayes, suggest that if BTC fails to hold the $78,000 support level, it could test $75,000, with significant open interest in options between $70,000 and $75,000 potentially leading to further volatility .
Impact on Major Players:
The market turbulence has significantly affected large stakeholders. A notable case involves a whale holding 65,675 ETH (valued at approximately $135.8 million) on Maker, now facing potential liquidation with a health rate of 1.05 and a liquidation price set at $1,931. Additionally, World Liberty Financial's portfolio suffered a $110 million loss, with Ethereum constituting 65% of its holdings .
Despite the downturn, some traders capitalized on the volatility. One whale reportedly secured an unrealized gain of $7.5 million by shorting BTC during the decline .
Current Market Status:
As of the latest data, Bitcoin is trading at approximately $103,192, while Ethereum stands at $2,381.50. Other major cryptocurrencies, including BNB, XRP, and Cardano, have also experienced declines, reflecting the broader market sentiment.
The recent events underscore the inherent volatility of the cryptocurrency market and the risks associated with leveraged trading. Investors are advised to exercise caution and stay informed as the market continues to navigate thr
ough these turbulent times.