Bitcoin's $5K Freefall Triggers Massive $400M Liquidation Event

Bitcoin has witnessed a rapid decline, falling below $100,000 just 24 hours after surpassing this landmark figure. This sudden drop has also dragged down altcoins such as LINK, DOGE, AVAX, SUI, and SHIB, leading to significant market turmoil.

Bitcoin's leap past the $100,000 threshold followed its absence from this level for almost three weeks, initiated by a recent purchase from MicroStrategy. Bitcoin's value continued to ascend, peaking during the Asian trading session on Tuesday morning at just under $103,000. Yet, the momentum was not sustained. By later that day, the cryptocurrency had settled around $102,000, before bearish pressures sent it spiraling down to $97,160 on Bitstamp within the last hour.

The situation for altcoins is even more severe. Ethereum, in particular, has faced a 7% daily decline, dipping below the crucial support level of $3,500. Similar falls were noted in XRP and SOL, both witnessing declines to levels below $2.3 and $210, respectively. The downturn was more pronounced for other altcoins including DOGE, SUI, AVAX, LINK, XLM, SHIB, DOT, BCH, and PEPE, with some experiencing drops as steep as 11%.

This intensified market volatility has severely impacted over-leveraged traders. Over 130,000 traders have suffered significant losses in the past day, with total liquidations reaching approximately $390 million, including over $200 million in the last hour.

The largest single liquidation was recorded on Binance, valuing at $12 million, highlighting the heightened risk facing the crypto trading community amidst this turbulence.