The recent downturn in the cryptocurrency market has led to a significant drop in Bitcoin (BTC) and Ethereum (ETH) prices, resulting in the liquidation of bullish bets worth $370 million. Major crypto exchanges such as Binance, Hyperliquid, and Bybit were the most affected, accounting for approximately 72% of all forced unwinds (automatic position closures). Bullish bets represent investments anticipating price increases, but sudden market declines turn these positions into losses. As Bitcoin and Ethereum are the largest and most influential cryptocurrencies, their price fluctuations have a profound impact on the market.
Platforms like Binance, Hyperliquid, and Bybit are globally popular for crypto trading, hosting numerous investors. When the market experiences a sharp downturn, liquidity pressure on these platforms intensifies, triggering forced unwinds to limit losses by automatically closing traders’ positions. Experts note that such volatility is common and advise investors to exercise caution, especially when a large number of bullish bets are liquidated. Price stabilization or further declines are possible in the coming days, depending on global financial conditions and other market factors. This market softness serves as a warning for investors to closely monitor changes and adopt prudent investment strategies.
Source: coindesk
