Bitcoin Whale Liquidated as Market Fear Intensifies
A significant liquidation event occurred on the cryptocurrency exchange HTX, where a $61.5 million bitcoin position was forcibly closed. This marked the largest single liquidation in the past 24 hours, according to data from Coinglass. The drastic move comes as bitcoin’s price plunged from about $68,600 on Saturday to $64,300 by Monday, wiping out weekend gains and contributing to a broader market turmoil.
The total crypto futures liquidations reached approximately $468 million, with long positions accounting for $434 million of that amount. Such a figure underscores the market’s optimistic stance heading into the week, only to face a sharp downturn. Bitcoin futures alone witnessed $213.62 million in forced closures, with ether (ETH) following at $113.89 million and solana (SOL) at $19.89 million. Hyperliquid’s HYPE token added another $10.72 million to the liquidation tally.
The Crypto Fear and Greed Index dropped to an “extreme fear” reading of 5, highlighting the growing anxiety among investors. This sentiment echoes the ongoing cycle of brief rallies followed by liquidations, as noted in our recent analysis of bitcoin’s struggle to maintain its price above $65,000 amid macroeconomic pressures.
Analyst Insight: The liquidation of such a massive position indicates the fragile nature of leveraged trading in the current volatile climate.
As bitcoin remains about 48% below its record high from October, traders continue to grapple with the cycle of sharp rallies and subsequent corrections. The question remains: how will the market stabilize amid ongoing fear and liquidation risks?
Sources: CoinDesk