💥💥💥 Crypto Bulls Rack up $580M Liquidations as #bitcoin Drops 8%, Ether, #Solana⁩ , #Dogecoin‬⁩ Plunge

Major cryptocurrencies plunged up to 20% in the past 24 hours as movements from a Mt. Gox-linked wallet unsettled traders during early Asian hours, causing the market to drop an average of 10%.

Bitcoin (BTC) fell 8% to briefly dip below $54,000 before recovering slightly, erasing all gains since February. Ether ($ETH ) dropped more than 10%, while Solana’s (SOL) and Cardano’s ($ADA ) values fell 8%. Dogecoin (DOGE) experienced a nearly 18% decline.

Coinalyze data indicates that these movements triggered over $580 million in liquidations of long positions—bets on higher prices—in one of the year’s largest liquidation events. Bitcoin (BTC) and Ether (ETH) saw losses exceeding $300 million alone.

The largest single liquidation order occurred on Binance, involving an ETH trade worth $18.4 million. Additionally, open interest—the total number of unsettled futures contracts—declined by 12%, reflecting a significant exit of capital from the market.

Liquidations happen when an exchange forcibly closes a trader’s leveraged position due to a partial or total loss of their margin. This occurs when traders cannot meet margin requirements to keep their positions open.

The market turmoil follows significant Bitcoin transfers from the defunct Mt. Gox exchange, which is preparing for creditor repayments. Mt. Gox is set to start distributing assets from a 2014 hack this month, with repayments in Bitcoin and Bitcoin Cash potentially adding further selling pressure.

Trading firm QCP Capital, in a Thursday Telegram broadcast, forecasted a challenging market for the coming months: “We anticipate a subdued Q3 for BTC as uncertainty remains over the Mt. Gox release and its impact on supply.”

Source - coindesk.com

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