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Bitcoin Slump Triggers $470M Crypto Liquations

Crypto market liquidations exceed $500 million as Bitcoin plunges below $66,000.

  • Over $500 million in crypto positions were liquidated, with nearly $470 million stemming from long positions being forced to close.
  • Bitcoin shed over 5%, falling below $66,000 and triggering $221 million in liquidations, accounting for nearly half of the total.
  • The sell-off coincided with a surge in oil prices, as Brent crude topped $100 per barrel due to supply concerns in the Strait of Hormuz.

A wave of forced selling rocked cryptocurrency markets on Friday morning as Bitcoin tumbled below $66,000, triggering over $500 million in total liquidations. According to CoinGlass data, a staggering $469 million of that total came from long positions being unwound.

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Consequently, Bitcoin traders bore the brunt, with $221 million in bets wiped out. Meanwhile, Ethereum saw $140 million in liquidations as its price dropped below the key $2,000 support level. This sharp decline has placed Bitcoin on track for a rare six-month losing streak, not seen since the 2018-19 crypto winter.

The digital asset’s slump occurred alongside elevated oil prices following global energy supply disruptions. Consequently, Brent crude oil held above $100 per barrel, while U.S. West Texas Intermediate crude gained over 4%.

Many traders on social platforms forecast further declines for Bitcoin, with some citing the geopolitical climate. As crypto analyst Satoshi Stacker wrote, “Bitcoin and US equities are selling off as oil and Gold rally heading into the weekend.” Retail sentiment for both major cryptocurrencies trended firmly in bearish territory throughout the sell-off.

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