Volatile Bitcoin Movement Causes $118M in Crypto Liquidations

On Thursday, bitcoin (BTC) peaked at $66,455 per coin around 7 a.m. EDT but dropped to approximately $64,516 by noon. The volatile movements resulted in $118.82 million in liquidations across the crypto economy, with long positions accounting for $61 million of that total.

Bitcoin’s Rapid Rise and Fall Triggers Major Liquidations in Crypto Economy

Bitcoin reclaimed the $66,000 level on June 20 but couldn’t maintain its position due to selling pressure. As of 2 p.m. Thursday, the price is fluctuating between $64,850 and $65,150. When BTC moves, it often influences the broader crypto market, causing altcoins to rise and fall in tandem. Today was no exception, with several cryptos experiencing similar price swings.

After BTC cruised up today past the $66K per unit zone, it lost momentum and hit a low of $64,516.

This market activity led to $118.82 million in derivatives being liquidated across the ecosystem. Bitcoin saw $33.10 million in short positions liquidated, while ethereum’s (ETH) price changes resulted in $22.21 million in long positions being wiped out. Solana (SOL) experienced $6.91 million in long liquidations, and $4.23 million in pepe (PEPE) longs were also liquidated.

In total, long positions faced $65.13 million in liquidations on Thursday, while short positions saw $53.6 million erased. Over the past day, 48,553 traders were liquidated. The Long to Short Ratio reveals a predominantly bearish sentiment among traders, though there are slightly more long positions piling up after the recent price adjustments.

The ratio is nearly balanced, with a small edge for longs. On Binance, traders are predominantly long, while Okx traders are mostly long on BTC. Conversely, a majority of Deribit traders are short on BTC as of 2 p.m. EDT Thursday. Despite the recent liquidations, ongoing long activity, and bets against BTC’s rise by hedge funds and traders leveraging crypto derivatives exchanges, a 10% price rebound could potentially erase billions in shorts.

What do you think about the volatile crypto market on Thursday? Share your thoughts and opinions about this subject in the comments section below.