Bitcoin (BTC) Price Continues Sharp Drop: $1.6 Billion Wiped Out! Heres the Reason for the Drop and the Latest Data!

The cryptocurrency markets were shaken by a sharp sell-off last night. During this time, Bitcoin ($BTC), the worlds largest cryptocurrency, plummeted from around $88,000 to the $84,000 range in just one hour.

However, the decline didnt stop there. Bitcoin continued its rapid fall in the US market on Thursday evening, dropping to $81,000, its lowest level in nine months.

The decline wasnt limited to Bitcoin. Ethereum (ETH) fell to $2,750, while Solana (SOL) was also among the major altcoins affected by the sharp sell-off. Overall, the market saw losses of 5-10% in most of the top 10 cryptocurrencies over the past 24 hours.

This decline is attributed to a combination of factors, including the sharp drop in gold and silver prices, the decline in US stocks, geopolitical tensions between the US and Iran, tariff threats, the risk of a US government shutdown, and disappointing earnings figures for technology companies.

This sharp decline negatively impacted futures markets as well, resulting in a large amount of liquidation.

During this decline, over $777 million worth of leveraged long positions were liquidated in just one hour.

According to Coinglass data, $1.68 billion was liquidated in the last 24 hours, with approximately $1.56 billion in long positions and $118.4 million in short positions.

In the last 24 hours, 267,453 investors were liquidated, with the largest single liquidation order occurring on HTX in $BTC-USDT ($80.57 million).

According to analysts, liquidation data is important for investors because it reveals where leverage is concentrated and where risk is disappearing. Large-scale long position liquidations often signal the elimination of speculative excesses and a readjustment of funding rates and open positions.

However, this doesn‘t necessarily mean the bottom has been reached. The broader conclusion is that this move is likely a clearing of leverage, rather than an expectation of a new decline. Analysts argue that with almost everything in the market in a long position, the market doesn’t need bad news.

*This is not investment advice.