Crypto Market Liquidation Hits Record $920 Million In Last 24 Hours

Key Points:

• Bitcoin’s price fell sharply to $65,000, its lowest since March, amid crypto market liquidations of $920 million.
• Ethereum also dropped before recovering, while the crypto market lost 7% in capitalization.
• Market uncertainty stems from US inflation worries, geopolitical tensions, and the looming expiration of $1.5 billion in Bitcoin options.

Bitcoin experienced a significant price correction, plummeting from $70,800 to $65,000, marking its lowest point since early March, following a sudden drop of $10,000 within an hour after reaching a new all-time high.

Bitcoin Price Plunge: From $70,800 to $65,000 in Crypto Market Liquidation

CoinGlass data revealed that the past 24 hours witnessed liquidated assets totaling $920 million, primarily affecting altcoins, followed by Bitcoin and Ethereum. The crypto market liquidation rate of long orders soared to 90%, the highest since the March 6 dump, when $1.1 billion was liquidated in the derivatives market.

Bitcoin options worth over $1.5 billion are expired, with a put-to-call ratio of 0.62 indicating a potential “max pain” point at $69,000, attributing the current price dip to record liquidations amidst high expectations for the upcoming halving event. The 5% decrease in Bitcoin today occurred concurrently with a 7% decline in the overall crypto market capitalization.

US Inflation, Geopolitical Tensions Affect Crypto Market

Ether, the second-largest cryptocurrency, initially dropped by 11% amid scrutiny from the US Securities and Exchange Commission but later recovered. Coinglass reported total crypto market liquidations of 296,545 traders within the past 24 hours, exacerbating panic across the market and causing significant losses in major altcoins.

While the precise cause of the downturn remains unclear, speculation points to concerns over US inflation exceeding earlier predictions, potentially delaying interest rate cuts by the Federal Reserve. Additionally, geopolitical tensions, including President Biden‘s warning of a potential Iranian attack on Israel, may have contributed to market uncertainty.