Leveraged traders in bullish positions of various cryptocurrencies ended up with losses.
The Bitcoin (BTC) and cryptocurrency market experienced a strong liquidation of leveraged positions in the last 24 hours, reaching a total of $1.4 billion.
Of this amount, 97% —equivalent to $1.36 billion—corresponded to long positions, that is, investments betting on the rise of crypto assets. In contrast, short positions totaled about $114 million, according to data from Coinglass.
Traders use leverage to amplify their investments with borrowed funds, a common strategy in futures trading.
However, when the market moves in the opposite direction to what traders expected, platforms automatically close these positions if the available margin does not cover the losses. This mechanism turned Bitcoin's drop into a trap for the bulls.
Below, it can be seen how liquidations fluctuated in the last 24 hours with price agitation.
Bitcoin drags the market down.
Mass liquidations coincided with an 8% drop in Bitcoin's price, bringing it down to the zone of $87,800 in the last 24 hours, as seen in the TradingView chart.
This level represents its lowest price so far in 2025 and a correction of 19% from its all-time high of $109,300 reached a month ago.
The pullback falls within normal ranges in a bull market, suggesting that the growth trend may not be in danger. For now, the correction is perceived as a healthy adjustment that avoids signs of overbought.
As usual, Bitcoin's drop impacted other cryptocurrencies, which suffered even greater price declines. Their lower capitalization and more limited use cases generate higher volatility compared to BTC.
Economic and political factors are pressuring the market.
Bitcoin's decline occurs in a context of macroeconomic uncertainty. In the United States, the world's largest economy that influences financial markets, inflation continues to show resilience, with a consumer price index (CPI) that has recorded a monthly increase of 0.4% in the last three months.
If this trend continues, annual inflation could reach 4.6% by July 2025, as reported by CriptoNoticias.
In this scenario, the Federal Reserve (Fed) has adopted a conservative stance regarding interest rates. In its last meeting, it kept rates in the range of 4.25%-4.50% and projected only two cuts for the year, fewer than the five previously expected by the markets.
High rates reduce available liquidity and favor investments considered safer, such as Treasury bonds, which decreases appetite for volatile assets like Bitcoin.
Additionally, the trade policies of the Trump administration have introduced more tension in the markets. The imposition of tariffs on China, Mexico, and Canada could lead to an increase in import costs and further pressure inflation, a scenario that could keep crypto assets under pressure.
Outlook for Bitcoin and the market.
The cryptocurrency market is facing a period of adjustments as investors assess the impact of monetary and trade policies on the global financial landscape.
Despite the current correction, Bitcoin still maintains a long-term upward trend, albeit with episodes of high volatility.
The digital currency has characteristics that make it a good store of value in the long term. Among them, its scarcity stands out mainly, with a circulating supply that can never exceed 21 million BTC.
Additionally, it is resistant to censorship and confiscation, making it especially attractive in crisis scenarios where, on many occasions, governments have taken money from citizens to remedy state deficits.
