Bitcoin Drops Below $82,000: A $770 Million Liquidation Wave Occurred! Here Are the Details

With Bitcoin falling below $82,000, liquidations in the cryptocurrency market reached $771 million in the last 24 hours. The majority of forcibly closed positions were bullish.

The acceleration of sell-offs in the cryptocurrency market led to widespread liquidations of positions by investors using high leverage. Bitcoin fell below the $82,000 level on Monday evening, while significant losses were seen across all major crypto assets.

Bitcoin fell from approximately $84,200 to $81,382 during the day, losing 2.8% of its value in the 24-hour period. Ethereum dropped 4.6% to around $2,425, while Solana fell 7.5%, XRP 6.4%, and Zcash 10.4%.

According to our data, approximately $389 million worth of positions were forcibly closed in the crypto derivatives markets within 24 hours. Of this amount, $311 million consisted of long positions opened with the expectation of rising prices. The fact that liquidations reached $304 million in the last 12 hours alone indicates that selling pressure intensified in a short period of time.

Liquidation refers to the automatic closure of a trade by the exchange when an investor’s margin falls below the required level. Even small price movements can result in the loss of all margin when using high leverage.

There isn’t a single factor behind the sell-off. Risk aversion ahead of US inflation data, rising Treasury yields, a strengthening dollar, and capital outflows from ETFs all put pressure on the market. Spot Bitcoin ETFs recorded net outflows of $681.1 million the previous week, while Ethereum ETFs saw net outflows of $542 million.

The fact that the Kospi index in South Korea fell by more than 6% also led to comments that the weakness in global risk appetite has spread to the crypto market.

It is important to remember that liquidation figures are based on publicly available stock exchange data and may not reflect the true total. Furthermore, a short-term price drop alone does not prove a change in the longer-term market direction.

*This is not investment advice.