Bitcoin has just experienced its largest liquidation event since 2021, with over $1.6 billion wiped out across the cryptocurrency market in the past 24 hours. This massive shakeout was driven by extreme volatility as Bitcoin’s price briefly dropped to $90,000 after crossing the historic $100,000 mark for the first time. The majority of liquidations ($815 million) occurred in long positions, highlighting the impact on overleveraged traders
A combination of factors contributed to this event, including profit-taking at record highs, large sell orders, and cascading liquidations from high-risk leveraged bets. The Fear & Greed Index dropped from “Extreme Greed” to “Greed,” reflecting shifting market sentiment. While this volatility resulted in significant losses for traders, some large investors, or "whales," took advantage of the dip to accumulate more Bitcoin, signaling ongoing confidence in the asset’s long-term potential
Such corrections are often seen as part of healthy market cycles, helping to flush out excessive leverage and stabilize prices in the long run. Currently, Bitcoin is hovering around $99,000 as it attempts to reclaim support levels