Bitcoin sees another flash crash, leading to $1.52 billion cascade in crypto liquidations

The crypto market faced a massive $1.52 billion liquidation in the past 24 hours, driven by intense volatility and a Bitcoin flash crash. Long positions accounted for $1.39 billion of the liquidations, with altcoins bearing the brunt. Over $759 million was liquidated in just the past hour, underscoring the rapid sell-off.

Key Highlights:

1. Bitcoin Performance:

• Price dropped to $94,129 before recovering to $97,000.
• $83.99 million liquidated in BTC positions within four hours.

2. Altcoin Impact:

• Ethereum (ETH): $134.50 million liquidated; price dropped to $3,510 before stabilizing at $3,700.
• Dogecoin (DOGE): $51.55 million liquidated; dropped to $0.38 and recovered to $0.422.
• Solana (SOL): $33.61 million liquidated; recovered to $220 from $203.
• XRP: $33.78 million liquidated; recovered to $2.26 after hitting $2.01.
• Cardano (ADA): Struggled around the $1 level after dipping below $0.91.

3. Contributing Factors:

• Over-leveraged positions, weak market sentiment, and cascading stop-loss orders triggered the sell-off.
• Binance led liquidations with $417.65 million, followed by OKX ($224.76 million) and Bybit ($207.16 million).

4. Market Sentiment:

• Despite the sell-off, the Crypto Fear and Greed Index remains at Extreme Greed (78), reflecting lingering bullish sentiment.

5. Crypto Market Overview:

• Total market cap: $3.44 trillion.
• Bitcoin dominance: 55.69%.
• 24-hour trading volume: $288.18 billion.

The events highlight the risks of over-leveraged trading and the potential for cascading market impacts during volatile periods.