Summary
TLDR: The crypto market experienced a rollercoaster ride with Bitcoin surging 11% before quickly plunging, leading to $640 million worth of crypto positions liquidations in a matter of hours. The majority of liquidations came in the last four hours, totaling $700 million in 24 hours. Such high liquidations are expected after a rapid rally, creating a cascading effect. Bitcoin fell from $63,600 to near $60,000 before recovering slightly to $61,000. BTC is still up 7% in the last 24 hours.
Key Points
1. In the last 24 hours, approximately $700 million worth of crypto positions have been liquidated, with Bitcoin accounting for $262 million and Ethereum for $109 million.
2. A significant amount of liquidations occurred within a short period due to a rapid and extreme rally in Bitcoin, leading to a cascading effect as leveraged traders are forced to liquidate their positions.
3. Despite the initial drop in price, Bitcoin has managed to recover slightly and is still up by 7% in the last 24 hours, currently trading at around $61,000.