Bitcoin plunged by nearly 10% to approximately 103,000, causing approximately 495 million in liquidations, and shaking up crypto markets around the world.
More than 127,000 traders were forced out of business, and 84 % of losses were suffered by long positions taking bets that the price would rise further
The BTC plunge to lows of $102K erased the new gains in a high of $106K earlier in the day.
That drop also pulled other cryptocurrencies down with it- Ethereum was down almost 4.5 %, and altcoins such as Solana, Cardano, and Dogecoin were down 3-5 %
The statistics of crypto derivatives proves that the blow: the largest single liquidation order was approximately 8 million on Bybit.
Bitcoin recovered a little to close at $103,485 at press time despite the messy sell-off.
The turnover of the market increased and this was represented by trading volumes.
Analysts indicate that such forced liquidations could purge over-leveraged traders and this could be the beginning of a more stable price action in the future.
It is yet to be seen, though, whether the bounce is sustainable or would lead to new volatility in the short term.
As Bitcoin finds itself in a crucial price battlefield, the bulls and the bears will be looking keenly to see whether the markets will stabilize or fall into new turbulence.
