Bitcoin Liquidations Hit $5.6 Million, Longs Face Squeeze Amid Price Volatility

The Bitcoin derivatives market witnessed a significant shakeout, with over $5.62 million in liquidations occurring within the past four hours. This spike primarily resulted from a long squeeze, where almost $5.28 million was liquidated from long positions, leaving shorts largely unaffected. This imbalance reflects a highly leveraged market, where traders held large positions hoping for further gains. As price fluctuations intensified, this led to heavy losses for those heavily invested, triggering substantial liquidations. 70% of the total liquidations came from longs as they were forced to sell their holdings when prices dropped.