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Bitcoin (BTC) Price Turmoil Wipes Out $1 Billion in Liquidations

Author: Content Editor
Bitcoin (BTC) experienced significant volatility in the past 24 hours, resulting in over $1 billion in liquidations and one of the largest sell-offs since FTX's collapse in 2022. Nearly $900 million in Bitcoin positions were liquidated as its price dropped from $100,000 to $90,000 before bouncing back to $97,000. The liquidation affected over 156,000 traders globally. Analysts are comparing this event to the FTX crisis, with many drawing parallels. Additionally, the movement of BTC by Mt. Gox and speculation about the US government offloading Bitcoin have added to market uncertainty. Some factors contributing to the liquidations include profit-taking, large sell orders, and overleveraged positions. However, amid the chaos, some large investors saw an opportunity and bought Bitcoin during the sharp decline. The broader crypto market also experienced increased liquidation levels. Analysts have differing views, with some seeing this as a necessary correction in Bitcoin's bull market and others believing the long-term fundamentals remain intact. The focus now shifts to Bitcoin's ability to reclaim critical support levels and sustain its rally. As of now, Bitcoin is trading at $98,404, representing a 4% drop since Friday's session opened.

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