Over $585M in Crypto Longs Liquidated as Bitcoin Falls Below $116,000

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Crypto Market Sees Heavy Liquidations as Bitcoin Dips Below $116,000

The cryptocurrency market experienced a significant wave of liquidations on Friday, with over half a billion dollars in long positions wiped out as Bitcoin's price fell below $116,000 amidst a broader market decline.

Data from CoinGlass revealed that $585.86 million in long positions were liquidated. Bitcoin accounted for a substantial portion, with $140.06 million liquidated as its price decreased by 2.63% to $115,356.

Ether also saw considerable liquidations, with $104.76 million in long positions cleared as its price dropped 1.33% to $3,598. Dogecoin experienced the largest percentage drop among the top 10 cryptocurrencies by market capitalization, falling 7% over 24 hours to $0.22 and triggering $26 million in liquidations.

Leverage Flush Impacts Bitcoin Bulls

This sudden downturn, characterized by crypto trader Ash Crypto as a "pure leverage flush," took many traders by surprise. "Many people longed Alts after they saw ETH pumping hard, so market makers dumped and liquidated the late longs," Ash Crypto commented on X.

In total, 213,729 traders were liquidated during this market correction. This highlights the high degree of leverage present in recent trading activity, which had previously propelled Bitcoin to a new all-time high of $123,100 on July 14. Across both short and long positions, approximately $731.93 million was cleared from the market, emphasizing the ongoing volatility within the cryptocurrency space.

Despite the pullback, the Crypto Fear & Greed Index remained in "Greed" territory with a score of 70 on Friday, suggesting continued optimism among many market participants.

Bullish Sentiment Persists Despite Liquidations

Several prominent figures and analysts in the crypto world remain optimistic about the market's overall direction, even in the face of these leveraged position liquidations. Galaxy Digital CEO Michael Novogratz stated on Thursday that he anticipates Ether reaching $4,000, driven by increasing institutional adoption.

Furthermore, Bitfinex analysts indicated in a report that Bitcoin's next major target could be $136,000 if the current upward trend continues.

However, caution prevails among traders, who are hedging against the potential for a rapid reversal in Bitcoin's price. A return to Thursday's price level of $119,500 would put approximately $3.07 billion worth of short positions at risk of liquidation, signifying the potential for further volatility as bulls and bears contend for market dominance.