Bitcoin (BTC) fell back below $90,000 and the drop quickly spread to the rest of the cryptocurrency market.
Over the course of the last 24 hours, Its price fell from that level to reach a minimum of $85,300.which represents a decrease of close to 3%. This price drop hit several altcoins.
As usually happens in these cases, the derivatives market suffered the consequences of this correction. In the last 24 hours, Liquidations of around 583 million dollars were recorded.
These losses corresponded to traders with leveraged positions affected by the sudden price volatility.
In the following graph provided by CoinGlass you can see the scope of these liquidations, which include operations in the entire digital asset market and not only in bitcoin.
Long positions, which were betting on an increase in price, concentrated most of the liquidations.
This occurs when the value of the asset moves sharply against the operationwhich forces exchanges to automatically close leveraged positions to avoid greater losses, as explained by CriptoNoticias.
Liquidations trigger automatic sales that suddenly increase the available supply, reinforcing the downward pressure and deepening the initial price movement. Consequently, falls tend to accelerate and gain intensity.
After this adjustment, the market’s attention is focused on whether bitcoin manages to recover the $90,000 level, a key area that could define its behavior in the short term.