Data shows that the cryptocurrency sector experienced significant liquidations as a result of the volatility that Bitcoin and other currencies experienced over the past day.
● Bitcoin experienced sharp fluctuations over the past twenty-four hours
The past day has been a tough period for Bitcoin and the cryptocurrency market as a whole, as prices experienced noticeable fluctuations. Bitcoin, in particular, saw sharp volatility, with its price undergoing upward and downward swings.
Below is a chart showing how the recent price movement of the leading digital asset looked.
As shown in the chart, the price of Bitcoin first dropped to $100,400 from its peak of around $105,800, then experienced a sharp recovery to reach $104,100.
The digital currency is still generally low over the past day, but its loss does not exceed 2%. Other cryptocurrencies have not been as fortunate, as their prices did not decline to the same extent. Ethereum is still down by about 6%, and Dogecoin by about 7%.
The volatile storm in this sector followed a public feud between U.S. President Donald Trump and Tesla founder Elon Musk. The dispute started when the former expressed his 'disappointment' in the latter during a meeting in the Oval Office due to his criticism of the 'Big Beautiful Bill'. Musk had previously described the bill as 'a disgusting act'.
The two sparked widespread controversy on social media, with the SpaceX founder even accusing the president of being involved in the Epstein files. Musk stated in a post on X: 'This is the real reason it’s not being released.'
● Digital currency liquidations are nearing one billion
With all the volatility that Bitcoin and its companies experienced over the past day, the derivatives market is expected to be negatively affected. According to data from the CoinGlass platform, huge amounts of liquidation have accumulated across various centralized exchanges.
The term 'liquidation' here naturally refers to the forced closing that any open contract must undergo if it accumulates losses above a certain percentage.
As shown in the table, the cryptocurrency market witnessed liquidations amounting to $970 million over the past twenty-four hours. Among these liquidations, the astonishing amount of $854 million, which accounts for 88% of the total, came from long-term investors alone. This is naturally due to the overall price decline during this period.