- Bitcoin hit a new all-time high of $69,324 before quickly crashing 6% down to $65,627
- The price crash resulted in over $32 million worth of long positions being liquidated as traders bet on further increases
- In just 24 hours, over $675 million in leveraged bets were liquidated across crypto markets showing the risks of betting on Bitcoin’s volatility
The price of Bitcoin hit a record high today before swiftly dropping in value. This volatility led to major losses for traders betting on the cryptocurrency‘s price.
Bitcoin Reaches New Peak of $69,324
Early this morning, Bitcoin reached an all-time high of $69,324 on the Coinbase exchange. This eclipsed the previous record of $69,044 set in November 2021. Bitcoin’s price has skyrocketed over 300% since the start of 2023, following a brutal bear market.
Price Plummets 6%, Wiping Out $32 Million in Long Positions
The excitement over Bitcoin’s new high was short-lived. The price plunged by nearly 6% soon after reaching $69,324. It now trades at around $65,627 per coin.
This crash resulted in over $32 million worth of long positions being liquidated. Longs allow traders to bet on the price rising in the future. When they are liquidated, the trader loses their position.
Nearly $675 Million in Leveraged Bets Liquidated in 24 Hours
Today’s volatility led to massive losses from leveraged bets on Bitcoin’s price. In just 24 hours, over $675 million in both long and short positions were liquidated across crypto markets. Roughly $200 million was from Bitcoin derivatives alone.
Conclusion
The swift rise and fall of Bitcoin’s price shows the cryptocurrency’s continued volatility. While the new record high was exciting, the ensuing crash highlights the risks of betting on the asset’s future price fluctuations. Traders suffered major losses from the liquidation of leveraged positions.
