10 a.m. ▪
3
min reading ▪ by
Micaiah A.
Among all the bull run stories around Bitcoin, this one stands out: BTC reaching peaks of more than $100,000, a record number of addresses… But at the heart of this euphoria, certain constants remain, notably the liquidations. Under conditions described as “unusual”, Coinbase played a key role in this brutal correction which shook the entire crypto market.
Coinbase: the central role in the fall of bitcoin
Bitcoin news: data recently published by Ltd highlights “crazy” behavior tradersnotably on Coinbase. Last Monday, BTC fell to $94,000, filling market inefficiency identified by analysts, with a probability of 96%.
This movement, although expected, led to massive liquidations, reminiscent of those of 2021.
Even more striking, Coinbase started the storm. An hour before the major drop, its traders began to sell aggressivelytriggering a cascade of forced liquidations:
- $1.6 billion liquidated on the crypto market;
- 142 millions de BTC longs liquidated;
- Compared to Ethereum, 208 million long went there.
As Ltrd explains, this phenomenon highlighted abnormal selling pressure:
« Massive orders caused a chain reaction in a mature market. »
A crypto market trapped by unpredictable mechanics
If some see it as a massacre, others consider this reset as a boon to stabilize altcoins. Analyst Jelle emphasizes: “ With this excess leverage cleaned up, the market is in a better position. »
Yet the nervousness persists. XRP and other altcoins suffered severe correctionsleading to an overall decline of 11% in crypto capitalization. These unexpected fluctuations demonstrate complex mechanics, where each major movement generates cascading reactions.
CoinGlass, a specialist in tracking liquidations, describes this episode as “ biggest sell-off throughout this bull cycle “. This reset, although painful for overindebted traders, could give a new lease of life in the market…or worsen its volatility.
Ultimately, the interaction between liquidations and the price of Bitcoin is complex. While these movements can propel BTC to dizzying heights, they can also precipitate a market collapse, sometimes as much as 75%.
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Micaiah A.
The blockchain and crypto revolution is underway! And the day when the impacts will be felt on the most vulnerable economy in this world, against all hope, I will say that I had something to do with it
