Bitcoin’s price volatility shook the crypto markets just before its upcoming halving event, causing significant fluctuations between $61,000 and $64,000. CoinGlass data revealed that this volatility led to a surge in liquidations across Bitcoin positions and the broader digital asset market. Long positions in Bitcoin took a hit on April 18 when the price briefly dropped below $62,000.

Traders who were bullish on Bitcoin saw over $57 million in liquidations across various trading platforms, while those with short positions, predicting price declines, lost more than $36 million within a 24-hour period. The largest liquidation order, amounting to $5.3 million, was seen in a BTC/USDT pair trade on OKX, wiping out positions for over 74,571 traders.

Ethereum (ETH), the second-largest cryptocurrency, experienced liquidations totaling over $53 million from both long and short traders. In comparison, Solana (SOL) had liquidations amounting to $14 million, followed by Dogecoin (DOGE) with approximately $9 million.

Bitcoin’s recent corrections and price swings have led to a cooling off period in the crypto market, following its surge to a new all-time high last month. The total crypto market is currently trading flat, with a valuation of $2.3 trillion according to CoinGecko, down 0.9% from previous levels. During the previous bull run, the market surpassed $3 trillion, coming close to this milestone after Bitcoin’s recent rally.

Historically, volatility before Bitcoin halving events is not uncommon, with markets retracing up to 50% before the code change takes effect. The halving event, which cuts block rewards in half, can impact mining companies’ revenue. To prepare for this event, miners have reportedly increased their mining activities to maximize profits and build up cash reserves to cover operational costs.

Bitcoin’s mining difficulty has also reached new highs before the halving event, indicating the increased competition among miners. As the market anticipates the impact of the halving event on Bitcoin’s price and mining ecosystem, traders and investors are closely monitoring these developments to make informed decisions.

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