Bitcoin (BTC), the world’s most valuable cryptocurrency, has been grappling with severe price volatility over the past few days, struggling to maintain its position above the crucial psychological $100,000 mark. This instability has triggered a wave of liquidations across the crypto market, with a staggering $527 million wiped out in the last 24 hours alone.
According to CoinGlass data, Bitcoin accounted for $161.96 million of the total liquidations. Long position traders took the hardest hit, with $92.12 million in liquidations, while short position traders faced $69.84 million in losses. This imbalance highlights how Bitcoin’s failure to hold the $100,000 level has impacted traders betting on its price to rise, causing significant pain for those in long positions.
The ripple effect from Bitcoin’s volatility has spread across other major cryptocurrencies. Ethereum (ETH) saw $109.23 million in total liquidations, with long position traders suffering $57.47 million in losses. XRP recorded $29.22 million in liquidations, with $16.70 million from long positions. Meanwhile, Dogecoin (DOGE) experienced a similar trend, as long position traders faced $15.34 million in liquidations compared to $11.36 million in short positions. Solana (SOL) had a more balanced liquidation distribution, with short position traders losing $13.01 million, while long traders saw $10.85 million in liquidations.
At the time of writing, Bitcoin has shown some signs of recovery, trading at $98,835.08, reflecting a 4.01% rally in the last 24 hours. However, its trading volume has dropped by 21.4% to $79.92 billion, indicating a more cautious market sentiment.
Also Read: Bitcoin Hits $100K Again: Can It Break Through the $108K Resistance This Time?
Raoul Pal, CEO of Real Vision, has advised the crypto community to brace for further volatility. He warned that Bitcoin could dip to $70,000 before reaching new highs but urged investors to stay patient and avoid panic selling. The current price fluctuations serve as a reminder of the inherent risks and potential rewards of investing in Bitcoin.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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