Bitcoin faced a significant downturn, plunging to $65,110, a 5% drop from $68,341, within just an hour on April 12. This sharp decline led to a massive liquidation of leveraged positions, totaling over $400 million across Bitcoin and altcoin traders. Ethereum, mirroring Bitcoin’s fall, tumbled 8% from $3,553 to $3,226.
The flash crash wiped out more than $417 million in leveraged positions within the hour, with Bitcoin longs and Ether longs contributing significantly. Binance saw the highest liquidations, totaling $171 million, followed by OKX with combined losses of $158 million.
Over the past 24 hours, total liquidations soared to $860 million among 270,993 traders. The crash coincided with a dip in U.S. stock markets following reports of accelerating inflation for the third consecutive month, raising concerns about potential Fed rate adjustments. JPMorgan Chase CEO Jamie Dimon cautioned about “persistent” inflation, geopolitical tensions, and the Fed’s Quantitative Tightening efforts, suggesting a weight on economic prospects.
Dimon emphasized the unprecedented scale of quantitative tightening’s impact, foreseeing continued pressure from inflationary forces, which might persist in the market.
