Bitcoin experienced a brief surge, surpassing $90,000 on Wednesday morning, only to encounter a sharp decline that brought its value down to $87,000 within a matter of minutes. This sudden price drop erased all gains made that day, leaving many investors surprised and concerned.
The rapid reversal resulted in significant liquidations totaling $148 million in just one hour. Of this amount, $109 million was tied to short positions, while $38 million came from long positions, indicating a widespread impact across both sides of the market.
How did this affect the overall market? The abrupt movement negatively affected broader market sentiment, resulting in a 1% drop across the entire cryptocurrency market as most major tokens followed Bitcoin's lead downwards. The event serves as a reminder of the high volatility that characterizes the crypto space, emphasizing the need for investors to remain vigilant and informed about market trends and risks.