Bitcoin Plunges: Liquidations Top $1 Billion

Amidst a volatile market, Bitcoin (BTC) has experienced a significant decline, reaching its lowest point since mid-January. The leading cryptocurrency has lost over $9,000 from its recent peak, falling below $90,000. This downturn has resulted in extensive liquidations, with losses exceeding $1 billion across the cryptocurrency market.

Factors Contributing to Bitcoin's Downward Spiral

On Friday, Bitcoin surged to $99,500, buoyed by positive news regarding Coinbase's legal challenges. However, this optimism swiftly dissipated as market conditions shifted.

Over the weekend, Bitcoin remained relatively stable around $96,000. However, a dip on Monday pushed the price down to $94,000, and by Tuesday morning, intensified selling pressure drove it below $90,000, marking a six-week low.

Liquidation Surge

The sharp decline in Bitcoin triggered widespread liquidation of leveraged investments, particularly long positions. Within just 24 hours, over $1.3 billion in positions were forcibly closed, with over $1.25 billion stemming from long bets.

The largest single liquidation occurred on Binance, amounting to $20 million. Data from CoinGlass indicates that over 364,000 traders faced liquidations during this period.

Impact on Altcoins and Market Conditions

The altcoin sector also faced significant losses, with key cryptocurrencies like Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) experiencing double-digit percentage drops.

Adding to the market's uncertainty was a reported security breach at Bybit exchange, where $1.4 billion was allegedly stolen, further eroding investor confidence.

Current Market Situation

Bitcoin's plunge below $90,000 and the subsequent liquidation spree highlight the volatility and sensitivity of the cryptocurrency market to external factors. As the situation unfolds, investors should exercise caution when engaging in trading activities.

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Bitcoin Sinks: Liquidations Exceed $1 Billion