A remarkable spike in Bitcoin’s value during the early hours (UTC) has precipitated a slew of liquidations across the cryptocurrency market, underscoring once again the high volatility of the digital asset sector.
As per the data, Bitcoin crossed the $35,000 threshold around 2 a.m., setting off a domino effect of liquidations totaling over $221 million. This event was a significant contributor to the $400 million in liquidations witnessed across the entire digital currency market in the past 24 hours.
The bulk of these liquidations, approximately $300 million, were attributed to the short side. This indicates a widespread closure of positions that gambled on Bitcoin’s value falling rather than rising.