Bitcoin Price Plunge Triggers Liquidation of $1.7 Billion in Long Positions

Bitcoin's drop to $81,000 led to the liquidation of over $1.7 billion in leveraged long bets, largely due to macroeconomic concerns and speculation around the Fed.

In a dramatic 24-hour period, the cryptocurrency market faced significant turmoil as bitcoin’s price plummeted to $81,000. This sharp decline resulted in the liquidation of more than $1.7 billion in leveraged trading positions, predominantly impacting long bets.

The fallout from this volatility is largely attributed to rising macroeconomic uncertainties and speculation surrounding the Federal Reserve's policies. Consequently, traders who had placed bullish bets found themselves facing substantial losses as the market reacted to these economic indicators.