Altcoins News

Story: Bitcoin Dives Below $116K as $600M in Long Positions Get Liquidated

By Sakamoto Nashi

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What Caused the Sudden Dump?. Crypto trader Ash Crypto explained on social media that the downturn was largely a leverage flush.

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A Harsh Wake-Up Call for Bullish Traders. This crash comes shortly after Bitcoin reached a new all-time high of $123,100 on July 14, fueling…

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What’s Next for Bitcoin?. While Friday’s dip shook confidence in the short term, some analysts remain bullish on Bitcoin’s…

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Leverage: A Double-Edged Sword. The latest price action underscores the dangers of using high leverage in volatile markets.

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Conclusion. The recent crypto market pullback has served as a stark reminder of how quickly sentiment can shift.

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The crypto market witnessed a sharp downturn over the past 24 hours, with Bitcoin’s price plunging below $116,000, leading to widespread liquidations across leveraged positions.

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According to CoinGlass, a crypto derivatives data provider, over $585.86 million worth of long positions were liquidated on Friday alone.

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Ethereum (ETH), the second-largest cryptocurrency by market cap, was not spared either. ETH fell 1.33% to $3,598, resulting in $104.76 million in long liquidations.

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Crypto trader Ash Crypto explained on social media that the downturn was largely a leverage flush. In a post on X (formerly Twitter), he wrote, “This dump is a pure leverage flush.

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In total, $731.93 million in leveraged positions (longs and shorts combined) were liquidated across the crypto market in the past day, per CoinGlass data.

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This crash comes shortly after Bitcoin reached a new all-time high of $123,100 on July 14, fueling strong bullish sentiment throughout the market.

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Despite the setback, market sentiment remains surprisingly optimistic. The Crypto Fear & Greed Index, a popular sentiment tracker, still displays a score of 70, indicating…

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However, the risk of further volatility remains high. Analysts warn that if Bitcoin quickly rebounds to around $119,500, it could trigger a wave of short liquidations totaling up…

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The latest price action underscores the dangers of using high leverage in volatile markets. While leverage allows traders to amplify gains, it also increases the risk of…

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Some market participants argue that the rapid growth of leverage in crypto markets contributes to these sudden crashes.

The Currency Analytics

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