The Bitcoin price plunge has resulted in the largest forced liquidation in cryptocurrency history. Concerns about a potential tariff war initiated by the United States have led to a significant drop in virtual asset prices.
According to Coinglass, a cryptocurrency data analysis firm, 742,778 individuals were liquidated in the virtual asset derivatives market, resulting in losses of $2.26 billion over the past 24 hours. This surpasses the previous maximum liquidation during the FTX incident, which was around 1.6 billion.
The liquidation scale for “long positions” betting on a price increase was $1.89 billion, while the liquidation scale for “short positions” anticipating a price decline was $375 million. Bitcoin experienced the largest liquidation scale at $869 million, followed by Ethereum at $712 million.
The market considers this decline excessive, and analysts believe it is unlikely to be the beginning of a prolonged downward trend. Jung Min-kyu, an analyst at Prestory Research, noted that the fundamentals have not changed, as the U.S. government remains a pro-virtual asset.
Moreover, the Bitcoin price plunge has raised concerns about the cryptocurrency’s volatility. Investors are closely watching the market, waiting for signs of recovery.
Additionally, the impact of the tariff war on the cryptocurrency market is still uncertain. Analysts are divided on the issue, with some predicting a prolonged decline and others expecting a quick recovery.
The Bitcoin price plunge is a significant event that highlights the cryptocurrency’s volatility. It will likely have a lasting impact on the market.
The Bitcoin price has dropped sharply from around $105,000 on the morning of the 31st of last month to as low as $92,000 at one point. Ethereum fell by 16% in just one day, Ripple by 17%, and Binance Coin (BNB) by 11.7%.
