- Bitcoin experienced significant volatility, trading between $65,833 and $68,239, leading to over $100 million in long position liquidations across the crypto market.
- Despite the flash crash triggered by President Biden’s election decision, BTC quickly rebounded above $68,000, indicating strong market support.
Shortly after Joe Biden, US President, dropped out of the presidential race, Bitcoin (BTC) experienced significant price fluctuations, trading between $67,968 and $68,108. Earlier, BTC saw a flash dip to $65,833 per coin, showcasing the market’s volatility.
This price swing led to the liquidation of $37.32 million in Bitcoin long positions over the past 24 hours and more than $100 million in longs across the entire cryptocurrency market.
The crypto economy’s total valuation stands at $2.45 trillion, though it saw a slight decline of 0.19% despite Bitcoin’s price recovery. The day’s volatility, believed have been sparked by a political event, specifically President Biden’s election decision, caused BTC to plummet to an intraday low of $65,833 before rebounding above $68,000.
Bidden Pulling Out of the Race Impacts: Flash Crash and Liquidation Impact
The announcement caused a rapid drop in BTC’s price, but the subsequent recovery was equally swift. The brief dip below $66,000 resulted in significant market movements, causing $100.26 million in long liquidations on crypto derivatives markets, with $37.32 million of that in Bitcoin long positions alone. Ethereum (ETH) also faced substantial liquidations, with $29.58 million in long positions wiped out.
Throughout the day, 49,787 traders were liquidated, highlighting the market’s instability. The most notable liquidation occurred on Binance, where one bitcoin-leveraged bet saw $10.95 million erased. In just four hours, following the Biden news, over $70 million in longs and $31 million in shorts were liquidated, emphasizing the dramatic impact of the day’s events on the crypto market.
Also Read: Bitcoin’s Next Bull Run: Elliott Wave Analysis Predicts Major Gains
Despite these fluctuations, the resilience of BTC’s price above the $68,000 mark indicates strong market support and investor confidence in the cryptocurrency. However, the day’s events serve as a reminder of the inherent volatility and risk in the crypto markets, particularly during periods of significant news and events.