Bitcoin’s price has taken a sharp downturn, dipping below $87,000 after a recent surge, causing significant losses for leveraged traders. The cryptocurrency fell by 5.7% over the past 24 hours, triggering approximately $260 million in liquidations across the market, according to recent data.
The decline follows a volatile 24 hours in which Bitcoin briefly reached highs of $94,700, only to crash back down. This sudden drop has stressed traders, especially those holding positions with high leverage. When leveraged positions reach a critical price point, exchanges automatically close them to protect the traders from further losses, leading to massive liquidations.
The recent slump comes just after U.S. President Donald Trump’s announcement that he will make “big announcements” on Tuesday, leaving markets in uncertainty. This followed initial optimism from Trump’s revelation of plans for a strategic crypto reserve, which had briefly boosted market sentiment.
According to Coinglass, Bitcoin alone saw around $104 million in long and short positions liquidated, with Ethereum (ETH) trailing behind at $50.24 million. On Sunday, following Trump’s announcement about the Strategic Crypto Reserve, the market experienced $836 million in total liquidations, primarily from short positions. However, today’s losses are largely attributed to long positions, as Bitcoin continues its downward trajectory along with other crypto assets.
Currently, Bitcoin is trading at $86,800, down 8.34% from its daily high, reflecting continued market turbulence as traders brace for further volatility.
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