Recent data reveals that the cryptocurrency sector has experienced a substantial number of liquidations following a period of extreme volatility, particularly in Bitcoin’s price over the last 24 hours.
Bitcoin Has Seen A Rollercoaster Over The Last 24 Hours
The past day has been a tumultuous time for Bitcoin and the broader cryptocurrency market, marked by noteworthy price fluctuations. Bitcoin (BTC) has particularly exhibited wild swings, moving dramatically in both upward and downward directions.
Below is a chart that illustrates the recent price movements of the leading digital asset.
As the chart indicates, the price of Bitcoin initially plummeted to a low of $100,400 from a peak of around $105,800, before staging a recovery to $104,100.
Overall, despite these fluctuations, Bitcoin remains down by less than 2% on the day. In contrast, other cryptocurrencies have fared worse; Ethereum is down almost 6% and Dogecoin has seen a decline of about 7%.
This volatility in the sector appears to have been triggered by a public dispute between U.S. President Donald Trump and Tesla CEO Elon Musk. The confrontation began when Trump expressed his disappointment in Musk’s criticisms of the One Big Beautiful Bill Act, which Musk had previously labeled a ‘disgusting abomination.’
The back-and-forth escalated on social media, culminating in Musk’s accusation that the President is linked to undisclosed Epstein files, asserting that this is the reason for their non-publication.
Crypto Liquidations Have Neared A Billion
In light of the recent price volatility, it’s no surprise that the derivatives market has felt the repercussions. Data from CoinGlass indicates a significant build-up of liquidations across various centralized exchanges.
The term ‘liquidation’ refers to the forced closure of open contracts that have incurred a specific percentage of loss.
According to the data, the cryptocurrency market has grappled with liquidations amounting to an astounding $970 million within the last 24 hours. Out of this total, approximately $854 million, or 88%, stemmed from long investors. This trend reflects the overall downward price action during the same period.
Notably, Bitcoin and Ethereum led the sector in liquidations, contributing $346 million and $286 million, respectively.
This widespread liquidation event is often referred to as a ‘squeeze.’ Given that long positions have constituted the overwhelming majority of this recent event, it can be classified as a ‘long squeeze.’
