A sudden 5% Bitcoin selloff forced a rapid unwind in crypto derivatives markets, liquidating nearly $400 million in leveraged long positions within a single hour. Bitcoin dropped from $71,765 to $67,895, marking its lowest price level in recent weeks, according to data from CryptoSlate. Traders who had positioned for continued upside were caught off-guard by the swift move, triggering cascading forced liquidations across exchanges. Flash crashes of this nature are typically amplified by high open interest in futures markets, where margin calls accelerate selling pressure as prices fall. The episode highlights the elevated leverage present in current market conditions and serves as a reminder of the volatility risks that accompany Bitcoin trading near all-time highs.
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