Crypto Market Sees $240M Liquidations as Bitcoin Drops 2.4%

In the past 24 hours, the crypto market experienced significant turmoil, with over $240 million in total liquidations. This wave of liquidations was primarily driven by the closure of long positions across various exchanges, as the market faced a sudden downturn.

Bitcoin futures were the most affected, with approximately $54.5 million in positions liquidated. Ethereum followed with around $49.8 million in liquidations, while other cryptocurrencies contributed to the remaining losses. The decline in prices led to over 117,000 traders receiving margin calls, as Bitcoin's price dropped from around $85,000 to $83,000, triggering forced closures of long positions.

Bybit, a prominent crypto exchange, saw the highest number of Bitcoin long positions liquidated, totaling $17.8 million. Binance and Gate.io followed with $11.3 million and $10 million in liquidations, respectively. The data indicates that approximately 70% of all liquidations were long positions, suggesting that the market was overextended and not adequately prepared for a price drop below $85,000.

This downturn in the crypto market coincided with broader movements in traditional markets. S&P futures posted further losses, while traditional safe-haven assets like gold and US Treasury bonds saw gains. Gold prices rose by 2.7%, and US 10-year bond prices increased by 0.55%. These shifts reflect a defensive repositioning by investors in the US, as ongoing controversies and uncertainties surrounding tariffs continue to impact market sentiment.

Despite the recent dip to $83,000 and the spike in liquidations, Bitcoin has shown relative strength compared to traditional assets over the past few weeks. Since the beginning of April, Bitcoin's price has increased by over 5%, while S&P 500 futures declined by more than 4%, oil dropped by nearly 13%, and the dollar index fell by 4.5%. This performance places Bitcoin as one of the better-performing assets during this period, trailing only gold, which has surged by nearly 6%.