Bitcoin Explosion: Crash in Crypto Prices Sparks $800 Million in Liquidity

BitcoinThursday's turmoil caught traders unawares, with the apparent emergency sparking an estimated $300 million in BTC-specific liquidity in 24 hours, and more than $800 million worth of the broader crypto market.

On Thursday morning, Bitcoin nearly touched $74,000, marking another all-time high for the red-hot cryptocurrency. Then a report from the US Department of Labor revealed that inflation has not yet fully subsided: Sending Bitcoin Spin down Not yet fully recovered.

BTC fell to a low of $65,848 on Friday morning; He has since recovered 67,860 dollars As of writing, it is down 8% from Thursday's high.

That dip was unexpected by many traders—amidst BTC's impressive performance, Record-breaking rally The last two weeks – hundreds of millions of dollars have continued to rise in the coin's value.

Our data shows that more than $200 million worth of BTC long positions have declined in the last 24 hours alone. CoinGlass. More than $70 million of the world's top cryptocurrency short positions were also liquidated in the same period.

With Bitcoin-related liquidity accounting for more than a third of all transactions in the crypto market, many other coins followed similar trends and felt the heat over the last day.

Ethereum It was down about 8% from yesterday's lackluster inflation news. 3,701 dollars Writing. In a parallel trend with BTC, ETH long positions worth more than $100 million have been destroyed followed by short positions worth more than $30 million.

Other signs of bleeding in yesterday's sudden price increase include Solana And DogecoinOver $40 million and over $18 million have been seen respectively.

Although most cryptocurrencies have had the majority of their liquidity come from long positions, Solana was the exception to bucking that trend – SOL long and short liquidity has been traded at around $20 million each in the past 24 hours.

Edited by Andrew Hayward.