In a wild 24-hour period, Bitcoin (BTC) faced extreme volatility, shaking the crypto market. A sudden crash led to over $1 billion in liquidations, marking one of the largest sell-offs since FTX’s collapse in 2022. Bitcoin briefly fell from $100,000 to $90,000 before recovering to $97,000, leaving traders scrambling to reassess positions.
Largest Liquidation Event Since FTX Collapse
According to Coinglass, over 156,000 traders were liquidated during the crash, with losses totaling $816.8 million in long positions and $279.6 million in shorts. The single largest liquidation occurred on OKX, valued at $19 million.
Analysts compared the event to the FTX crisis, emphasizing its scale. Crypto influencer McKenna noted this was the most substantial liquidation event since FTX’s downfall.
Adding to the chaos, Mt. Gox moved 3,620 BTC worth $352.69 million shortly after transferring $2.43 billion in Bitcoin to unknown wallets. This timing fueled speculation, with some wondering if the U.S. government offloaded Bitcoin during the dip.
Key Factors Behind the Liquidations
Several factors contributed to the crash:
- Profit-taking at key price milestones.
- Large sell orders as Bitcoin reached $100,000.
- Overleveraged positions, with many traders relying on borrowed funds to bet on continued gains.
Jacob King of WhaleWire criticized retail investors for succumbing to FOMO. “Retail investors opened leveraged longs at all-time highs while whales cashed out,” he said.
Whales Capitalize Amid Chaos
Amid the turmoil, some whales saw an opportunity. Lookonchain reported that a whale purchased 600 BTC worth $58.85 million during the dip, bringing their two-week accumulation to 1,300 BTC valued at $127 million.
This buying highlights Bitcoin’s enduring appeal even during volatile times. Analysts suggest this event may act as a short-term market correction, reinforcing long-term fundamentals.
Bitcoin’s Next Moves: Can It Reclaim $100,000?
The broader crypto market echoed Bitcoin’s volatility, with Ethereum and other major coins also seeing liquidations. As of now, Bitcoin is trading at $98,404, down 4% from its recent high.
The focus now shifts to whether Bitcoin can hold key support at $97,000 and regain momentum to reclaim its $100,000 milestone. Renewed whale accumulation and buying interest provide hope for a continued rally.
