Crypto Bloodbath: $650M Gone, $1B at Risk if BTC Drops to $77K

Bitcoin surged to a new all-time high, driving altcoins like Ethereum, Dogecoin, and Solana up. But as excitement spread, the market quickly turned volatile, wiping out over $650 million in liquidations. 

With Bitcoin’s price hovering near $80K, $1 billion in leveraged positions is at risk if the price dips to $77K. Let's explore what happened and why more chaos might be coming.

Liquidations Take Over

Bitcoin’s rally sparked a massive surge in volatility. Within 24 hours, over 230,000 traders got liquidated. Short positions were hit the hardest. Bitcoin’s leveraged market saw $121 million vanish. The OKX exchange had the largest liquidation order at $15.56 million. 

Ethereum followed with $90 million in liquidations, and Dogecoin lost $68 million. The rapid liquidations show how quickly things can go wrong. The market remains unpredictable, and many traders are at risk.

What’s Next for Crypto Traders?

Bitcoin is entering price discovery mode, with political events like Trump’s victory and the Fed’s interest rate cut adding to the uncertainty. The rise of U.S. Bitcoin ETFs has also sparked a rush of new traders eager to jump on the bandwagon. 

But that only increases market instability. According to Coinglass, if Bitcoin drops to $77,253, about $1 billion in long positions could be liquidated. A retrace below $80K is looking more likely.

Changpeng Zhao (CZ), co-founder of Binance, warns traders to manage risk carefully. He advises holding crypto assets through the bull market rather than trying to time daily trades.