Bitcoin plummeted from $61,000 to $49,000 within 24 hours, but recovered to $52,000 at press time. The price drop triggered massive market liquidation, with total losses reaching $1.06 billion, according to Coinglass. Long positions were heavily affected, amounting to $902.16 million, while short positions were liquidated for $153.18 million.
By asset, Bitcoin positions were liquidated at $359.06 million, while Ethereum positions recorded $344.33 million. Ethereum fell more than 20% during the same period. The data reflects a significant market correction affecting leveraged traders. While the bounce back to $52,000 suggests possible stabilization, the recent volatility highlights inherent risks in the market as global volatility increases and the Japanese Yen continues to struggle.
The Japanese yen surged to a seven-month high, trading at 145.25 to the dollar, driven by weak U.S. employment data that raised concerns about an economic slowdown and expectations of more interest rate cuts by the Federal Reserve. The yen's strength caused major disruptions to yen carry trades, in which investors borrow low-yielding yen to invest in higher-yielding assets. The unwinding of these trades triggered a global sell-off, with Japan's Nikkei stock average plummeting nearly 7%, followed by other Asian markets. The turmoil spread to emerging market currencies, with the Mexican peso falling as much as 2% against the dollar.
