Massive Bitcoin Market Turbulence Triggers $4,500 Crash; $167M in BTC Longs Erased in 1 Hour

The price of bitcoin continued to decline over the weekend, dropping an additional 7.7% in the last 24 hours. It plummeted to a daily low of $61,384 per coin, prompting a significant wave of leveraged liquidations on Saturday.

Bitcoin Value Declines Amid Market Instability; Extensive Liquidations Reported

By 4:00 p.m. Eastern Time on Saturday, bitcoin’s (BTC) price dipped below the $62,000 threshold after hovering around $67,000 for most of the morning’s trading sessions. The cryptocurrency experienced a 7.7% decrease within three hours, triggered by a flurry of panic selling that started at 1:00 p.m. Two-week statistics indicate that bitcoin has fallen 8.7% compared to the U.S. dollar, while trading volume soared to $41.63 billion throughout the day.

Around 4:15 p.m., the price stabilized, cooling down to just above the $62,000 mark with several attempts to climb into the $63,000 range. In total, over a three-hour span, bitcoin lost $4,500 in value despite some recovery. Hourly liquidations from long positions in bitcoin alone saw $167.13 million wiped out, with Saturday’s total liquidations across the cryptocurrency landscape nearing the $1 billion mark again. At 4:15, the 24-hour liquidation tally stood at $697.07 million, with $598.91 million from long positions.

By 4:25, bears had pushed BTC’s price back under the $62,000 mark, triggering additional leveraged liquidations. Throughout the day, 219,299 traders faced liquidation. This spike in selling pressure could potentially push BTC prices even lower, perpetuating a cycle that hastens the decline. Often, such rapid sell-offs are driven more by emotional responses than by thoughtful analysis, leading more traders to sell off in a bid to minimize losses. Additionally, bears are likely to capitalize on this scenario. Presently, at 4:45 p.m. on Saturday, BTC is trading for $62,777 per coin on Bitstamp.

What do you think about the bitcoin selling pressure that ensued on Saturday? Share your thoughts and opinions about this subject in the comments section below.