Bitcoin Flash Crash Causes $700 Million Crypto Long Liquidations

Data suggests the cryptocurrency futures market has seen large liquidations in the last 24 hours following the Bitcoin flash collapse.

Bitcoin's Last Day Was Volatile
The preceding day saw BTC hit $103,500 and $90,500 in a tight span. The last level change was so sudden it was a flash crash.

The graph shows that the cryptocurrency quickly rebounded from the sharp red candle. After the rebound, the coin trades around $98,000, down 5% from the high.

Ethereum (ETH) and Solana (SOL) have been more durable than BTC, losing just 2% in the last day.

Bitcoin Longs Just Saw A Liquidation Squeeze
As assets throughout the cryptocurrency futures market have experienced strong price activity, CoinGlass data shows several liquidations.

The following figure shows $893 million in bitcoin derivatives liquidations in the previous 24 hours. A contract is "liquidated" when the exchange closes it off after a specified loss.

Long contracts made up 82% of all liquidations, nearing $733 million. Bitcoin and others' net negative behavior explains this high long domination.
This new mass liquidation is called a “squeeze.” Longs dominated this squeeze, therefore it's termed a long squeeze.

The derivatives sector's lengthy squeeze may have been the inevitable result of red-hot market circumstances. In an X post, CryptoQuant community analyst Maartunn noted that Open Interest rose with Bitcoin.

Usually, derivatives holdings explode during a rise due to leverage. Price movements like these may unravel volatilely.

The latest Bitcoin run increased Open Interest by over 15%, which is huge. All these leveraged longs were squeezed when the price reversed, fueling the drop and explaining its sharpness.

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