Bitcoin price drop triggers $250m in liquidations, signals market top
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Bitcoin's recent price dip from $72,500 to just above $69,000 has caused liquidations of over $250 million in bullish positions, highlighting potential market instability. The widely-followed Fear and Greed Index showed “extreme greed” on Thursday, a level historically associated with market corrections.
Market Overheated Amid High Bullish Sentiment
In the past 24 hours, Bitcoin dropped nearly 4%, sparking a wider crypto market pullback with a 5.5% decrease in total market capitalization. Thursday’s "extreme greed" sentiment level shifted to "greed" on Friday, suggesting that further corrections could be on the horizon. Notably, nearly 90% of futures positions were long, reflecting a strong bullish sentiment that ultimately contributed to a substantial liquidation wave.
Heavy Liquidations and Futures Market Trends
CoinGlass data reveals that BTC futures alone recorded $88 million in losses, with other major assets like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) seeing combined liquidations of around $100 million. This level of liquidation signals a market under significant speculative pressure, as open interest peaked at $43 billion earlier this week before dropping to $41 billion.
Potential Correction as the U.S. Election Nears
With U.S. elections on November 5 and fluctuating global monetary policies, the crypto market’s bullish momentum may face headwinds. Investors targeting a near-term price increase to $80,000 for Bitcoin should closely monitor liquidity metrics and sentiment indicators, as extreme greed historically marks turning points in the market.
Market Overheated Amid High Bullish Sentiment
In the past 24 hours, Bitcoin dropped nearly 4%, sparking a wider crypto market pullback with a 5.5% decrease in total market capitalization. Thursday’s "extreme greed" sentiment level shifted to "greed" on Friday, suggesting that further corrections could be on the horizon. Notably, nearly 90% of futures positions were long, reflecting a strong bullish sentiment that ultimately contributed to a substantial liquidation wave.
Heavy Liquidations and Futures Market Trends
CoinGlass data reveals that BTC futures alone recorded $88 million in losses, with other major assets like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) seeing combined liquidations of around $100 million. This level of liquidation signals a market under significant speculative pressure, as open interest peaked at $43 billion earlier this week before dropping to $41 billion.
Potential Correction as the U.S. Election Nears
With U.S. elections on November 5 and fluctuating global monetary policies, the crypto market’s bullish momentum may face headwinds. Investors targeting a near-term price increase to $80,000 for Bitcoin should closely monitor liquidity metrics and sentiment indicators, as extreme greed historically marks turning points in the market.