Bitcoin Plunges $2,000 in Seven Hours, Derivatives Market Liquidated

A sharp price drop in Bitcoin has left the crypto market reeling after wiping out over $2,000 of value in just seven hours. The sudden decline broke the $64,000 support and liquidated many positions in the derivatives market, exposing the vulnerability of long bets.

The price fall was triggered by a brutal trend reversal from $65,705 to $63,666, resulting in an intraday low. This downward movement had a cascading effect on futures and options markets, clearing order books of overly exposed positions.

Across the entire crypto sector, forced liquidations reached a total of $312 million during this period, severely impacting traders positioned long. Bitcoin generated $87 million in liquidations, with $70 million coming from long positions wiped out and $17 million from short positions caught off guard during the subsequent rebound.