$1 Billion Liquidated in 24 Hours as Bitcoin Drops Below $83,000

The cryptocurrency market has experienced a sharp downturn, with Bitcoin’s price dropping below $83,000. This decline has led to a wave of liquidations totaling $1 billion over the past 24 hours, as leveraged traders faced significant losses amid the market correction.

According to Coinglass, a total of 305,170 traders were liquidated during this period, reflecting the impact of Bitcoin’s latest decline in price on investor positions.

Detailing The Total Liquidations

The majority of liquidations came from long positions, where traders had bet on Bitcoin’s price increasing. As the market moved against them, forced sell-offs occurred, accelerating the downward momentum.

Data from Coinglass shows that long liquidations accounted for over 80% of the total, reaching $833.24 million, while short liquidations were significantly lower at $170.08 million.

Among the affected crypto exchanges, Bybit and Binance recorded the highest liquidation volumes, with $411.54 million and $242.25 million, respectively. Bitcoin itself accounted for the largest share of the total liquidations, contributing $371.66 million.

Ethereum (ETH) was the second most impacted cryptocurrency, with $200.94 million in liquidations, while other crypto assets collectively accounted for over $100 million. The single largest liquidation order took place on Bitfinex, with a $13.40 million BTC position being forcefully closed.

The high liquidation volume suggests that many traders were caught off guard by Bitcoin’s price drop. With long positions dominating liquidations, it indicates that market sentiment was largely bullish before the downturn.

Market Outlook: Can Bitcoin Recover Soon?

Despite the sharp downturn, some analysts remain optimistic about Bitcoin’s long-term trajectory. Crypto analyst Javon Marks noted that despite the recent decline, indicators still suggest Bitcoin could be gearing up for a larger bullish rally.

Meanwhile, RektCapital pointed out that Bitcoin’s decline has resulted in a fully filled CME gap between $84,650 and $93,300, which could potentially lead to a price reversal in the near term.

Additionally, Ki Young Ju CEO of on-chain data provider platform CryptoQuant has recently revealed that the “market will likely remain slow until sentiment in the US improves.”

According to Ju, there has been no significant on-chain activity, and key indicators are neutral which indicates that the bull cycle is still very much intact.

Featured image created with DALL-E, Chart from TradingView