Nearly $1B Liquidated In an Hour as Bitcoin Plunges Below $82K
The post Nearly $1B Liquidated In an Hour as Bitcoin Plunges Below $82K appeared on BitcoinEthereumNews.com. In brief Bitcoin open interest dropped by 8,500 BTC in under 48 hours, a $700 million unwind of leveraged positions. One crypto whale saw profits plummet by 93% to $4M, leaving them sitting on $37M in unrealized losses on long positions. An analyst says the sell-off was driven by leverage, unlike October’s spot-driven liquidation event. The crypto market continued its downward slide Friday morning, with nearly $1 billion liquidated in an hour as Bitcoin slipped to an intraday low of $81,868. The top crypto shed 2% in under 10 minutes, per CoinGecko data, further strengthening the multi-week downtrend. Over the past 24 hours, the crypto market has seen some $1.97 billion in liquidations, per Coinglass, while the top 10 cryptocurrencies by market cap (barring stablecoins) are down double digits over the past 24 hours, exacerbating the selloff. As a result, the total crypto market cap dropped below $3 trillion for the first time in seven months. The S&P 500 index is stabilizing after Thursday’s dip, suggesting the decline was localized to cryptocurrencies. Uncovering the scale of the drop “This is the first major flush since October 10,” Maarten Regterschot, a verified analyst at CryptoQuant, told Decrypt. While the historic liquidation event on October 10 was driven by spot selling, the current drop is leverage-driven,” the analyst explained. Bitcoin-denominated open interest, which represents the total number of open positions, surpassed the October 10 level by 5,000 BTC on Thursday, hitting 295,054 BTC, according to Velo data. The combined drop over the past 48 hours, however, has undone the position, bringing the metric down by roughly 8,500 BTC to 286,461 BTC. At Bitcoin’s current price of $82,000, this drop in open interest is worth nearly $700 million. A closer look shows that some $500 million in Bitcoin longs were wiped out in…