In today’s crypto news, the cryptocurrency market suffered one of its largest liquidation events of the year after Bitcoin plunged to an intraday low of $61,351. According to Arkham Intelligence data, approximately $1.61 billion was liquidated across the crypto market over the last 24 hours. The vast majority of the losses came from traders betting on higher prices, with long positions forming 85% of the liquidations.
$1.6 Billion in Crypto Positions Wiped Out
The scale of the liquidation event highlights just how aggressively traders had positioned themselves for a market rebound. With $1.36 billion in long positions wiped out, long traders bore the brunt of the sudden market slump. Conversely, short traders lost a total of $256.11 million in the same period.
As Bitcoin broke through key support levels overnight, exchanges automatically liquidated thousands of leveraged positions. Those liquidations created additional selling pressure, accelerating the decline and triggering a chain reaction across the broader market.
The impact extends far beyond Bitcoin. Ethereum, Solana, XRP, Dogecoin, and other major digital assets all posted steep losses as the liquidation cascade spread throughout the sector.
Events like these often occur when traders become overcrowded on one side of the market. Perhaps they were convinced that Bitcoin had already formed a local bottom and was preparing for a recovery. Instead, prices moved sharply lower, catching long traders completely offside, resulting in one of the largest leverage wipeouts seen this year.
Strategy’s Bitcoin Sale Sparks Panic Across Crypto Markets
Several factors contributed to the overnight crash, but growing uncertainty surrounding Michael Saylor and Strategy’s Bitcoin holdings was the biggest catalyst. The market was rattled after Strategy reported it had sold Bitcoin, breaking with a narrative Saylor fiercely presented as untouchable.
For years, Strategy built its reputation around accumulating Bitcoin regardless of market conditions. The company became one of the strongest symbols of institutional conviction in the asset and one of the largest corporate holders of BTC in history. That is precisely why the sale shocked investors.
The move immediately raised questions about whether Strategy could sell more Bitcoin if market conditions continue deteriorating. Even if the sale itself represented a negligible portion of the company’s overall holdings, the psychological impact was enormous. Investors suddenly had to consider a scenario where one of Bitcoin’s biggest supporters was no longer a perpetual buyer.
At the same time, Bitcoin ETFs continue suffering substantial outflows. Spot Bitcoin ETFs have lost almost $5 billion over the last three weeks as institutional investors reduce exposure amid weakening market sentiment. Renewed hostilities between the United States and Iran also added further pressure, pushing investors toward a risk-off stance. Combined, these factors created the perfect environment for a sharp downside move.
After falling to $61,351, buyers stepped in aggressively and pushed the asset back to $63,430, where it was trading at the time of writing. Investors will now be watching to see whether Bitcoin can reclaim the $65,000 level. A sustained move above that threshold could help restore confidence, while another breakdown may expose the market to another wave of liquidations.
Temitope Olajide
