Bitcoin Plummets Over $2,000 In An Hour, Triggering $175 Million In Liquidations Amid Market Volatility
On May 10, the Bitcoin market experienced a significant drop, plunging over $2,000 in just an hour, triggering $175 Million in liquidations amidst a wave of volatility.
This sentiment was echoed by the fact that the downturn on May 10 resulted in the liquidation of $127 million in long positions.
Before this sudden decline, Bitcoin had been relatively stable, with prices hovering around $63,494. However, the cryptocurrency soon fell to an intra-day low of $60,308, according to data from CoinStats.
This sharp decline resulted in substantial losses for leveraged long traders who had not anticipated the drop.
Michaël van de Poppe, founder of MN Capital, commented on the situation, noting that Bitcoin had been showing “low volatility” and choppy price action since February 29.
See Also: Bitcoin Unable To Stage A Recovery Decisively, Ethereum Consolidates Below $3K
He regarded the drop as part of a “final accumulation” phase, suggesting that if the support level was not maintained, prices could potentially fall further to between $52,000 and $55,000 as the final stage of correction.
Adding to the insights, Daan Crypto Trades mentioned that the previous day’s flash crash to $60,000 was a quick market movement meant to “punish those longs that aped in above $63K.”
This sentiment was echoed by the fact that the downturn on May 10 resulted in the liquidation of $127 million in long positions.
This contributed to a larger total wipeout of $175.17 million in a 24-hour period, as reported by Coinglass.
In just the last hour, $9 million worth of BTC leveraged positions were liquidated, which included $6.36 million from long positions alone.
This reflects the high stakes and rapid changes in the Bitcoin trading market, underlining the volatility and the dramatic impacts it can have on traders.
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