Market Shockwave: Bitcoin Derivatives Face Historic Wipeout
In a devastating market event, over $500 million in cryptocurrency long positions were liquidated as Bitcoin plunged below the critical $80,000 level, marking one of the largest single-day liquidation events of 2025. This crash follows recent warnings about Bitcoin’s $80K support test, which has now materialized into a significant market correction.
Liquidation Analysis: By the Numbers
According to data from CoinGlass, the total liquidations have surpassed $685 million in the past 24 hours, with long positions accounting for a staggering 76% ($519 million) of all liquidations. Bitcoin led the carnage with $278 million in liquidations, while Ethereum saw less than half that amount, indicating heightened speculative activity around BTC.
Market Impact and Technical Analysis
The mass liquidation event, known as a ‘long squeeze,’ has several key implications:
- Bitcoin price dropped to $79,400, marking a 6% weekly decline
- Open Interest has shown a consistent downward trend
- Reduced leverage could lead to more stable price action
- Market sentiment shifts from extremely bullish to cautious
Expert Perspectives
Market analysts suggest this correction could be healthy for the market long-term. “The reduction in leverage and cooling of speculative activity typically leads to more sustainable price action,” notes crypto analyst Sarah Chen from DigitalAsset Research.
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Looking Ahead: Market Outlook
While the immediate market reaction has been severe, the decreasing Open Interest suggests a healthier market structure is forming. Traders should monitor the $75,000 level as the next critical support zone.
Source: Bitcoinist