Bitcoin Price Plunges 10%, High Liquidation Imbalance Identified

Bitcoin’s price experienced a sudden and significant drop, plummeting from over $86,000 to below $84,000 without any apparent macroeconomic triggers. This dramatic price change is linked to an unprecedented imbalance in liquidations: long positions liquidated by $52 million compared to only short positions of $15 million, leading to a whopping 346% difference. 1. This high imbalance points to a critical structural issue within the crypto market centered around leverage. This sudden correction suggests that markets are particularly vulnerable to internal fluctuations when driven by excessive speculative investment.