Crypto Market Faces Major Liquidation Wave as Bitcoin Dips Below $90,000
By: Isha Das
The cryptocurrency market is experiencing a notable shake-up as recent data reveals a fresh wave of liquidations hitting the crypto derivatives space. Bitcoin, alongside various other digital assets, witnessed a sharp retrace, leading to thousands of traders being squeezed out of their positions. According to CoinGlass, the market has seen more than $462 million in liquidations over the last 24 hours, predominantly affecting those who were bullish on the market.
More than 90% of these liquidations involved long positions, with around $418 million wiped clean as Bitcoin dipped to a temporary low of just under $89,600. This recent downturn comes after an optimistic streak where Bitcoin had managed to climb above the $94,000 mark, enticing traders to open fresh long contracts, hoping for continued ascension. However, the sudden price plunge caught many off guard, leading to a significant financial displacement.
The major contributors to this liquidation trend were Bitcoin and Ethereum, with both experiencing substantial position closures. Bitcoin witnessed $132 million in liquidated positions, whereas Ethereum saw a close $116 million. Notably, Zcash (ZEC) made an unexpected appearance in this high liquidation list, contributing $24 million, surpassing usual suspects like XRP and Solana. The occurrence of such market movements accentuates the inherently volatile nature of crypto markets, underpinned by leverage and rapid price dynamics.
At the same time, Bitcoin maintained a balance around the $90,000 level, awaiting potential fodder from domestic macroeconomic news. The crypto community's attention has also pivoted towards the United States Supreme Court as it deliberates on significant trade tariffs imposed previously. Market analysts are keenly observing these developments, which could sway Bitcoin's continued stability or potentially precipitate further fluctuations in its price dynamics. For now, the market remains precariously poised as stakeholders monitor these macroeconomic indicators for further cues.
