Bitcoin’s wild Tuesday: From a 14-month low to a sharp rally triggers $740 million in liquidations
Bitcoin plunged to a 14-month low before rallying, causing $740 million in derivatives liquidations, primarily long positions.Summary
Bitcoin experienced extreme volatility on Tuesday, dropping to $72,900, its lowest point since November 2024, before rebounding by 5% to above $76,000, though gains were later partially surrendered. This sharp move triggered $740 million in total liquidations across digital asset derivatives, with long positions in BTC and ETH suffering the most significant wipeout. The initial drop breached a key technical level from April 2025, suggesting a risk of deeper correction. However, the rebound coincided with positive news, including a deal to end a partial government shutdown and Nvidia CEO Jensen Huang dismissing rumors of friction with OpenAI, which eased pressure on risk assets. Analyst Benjamin Cowen suggested that the overwhelming bearish sentiment might soon lead to a countertrend rally, noting that sweeping prior lows often precedes relief rallies, but warned that failure to bounce could signal a difficult midterm year for crypto.
(Source：CoinDesk)