Bitcoin price reached a new all-time high of $73,050 before dropping below $70,000 in the last 24 hours, leading to over $361 million in leveraged trades being liquidated. Long positions worth $258 million were wiped out, while short sellers lost over $103 million, according to data from Coinglass.

This significant price swing resulted in the largest long liquidation since March 5 when Bitcoin hit its previous all-time high of around $69,000. Despite the volatility, Bitcoin only fluctuated by 4.85% between its low of $69,365 and high of $72,733, as reported by CoinGecko. Currently, Bitcoin is trading at around $71,400.

The recent uptick in volatility is believed to be due to traders anticipating a price correction, with concerns that Bitcoin has not rallied during US trading hours when ETFs start trading. However, there is also a sense of FOMO in the market, indicating that the rally may continue.

Futures open interest saw a 5% increase over the weekend, likely due to traders putting on positions with tight stops. Bitcoin and Ether led in terms of liquidations, with $106.3 million and $73.3 million respectively. Other cryptocurrencies like Solana, Dogecoin, and Ordi also experienced significant liquidations.

The highest number of liquidations occurred on OKX, totaling $152 million, followed by Binance with combined losses of $128.4 million. Short sellers have faced substantial losses, with over $6 billion lost in bets against publicly traded crypto firms in the first 11 months of 2023 as Bitcoin surged by 130% to $37,800.

As the market continues to show volatility, it is essential for traders to stay informed and make strategic decisions to navigate the fluctuations in the cryptocurrency space.

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