In less than half an hour on Tuesday, the price of Bitcoin (BTC) experienced a sudden 5% drop, resulting in significant losses for traders with leveraged exposure to cryptocurrencies. According to data from Coinglass, this sharp decline led to over $165 million in leveraged positions being wiped out. The majority of these losses came from Bitcoin longs, which accounted for just over $50 million, and Ether (ETH) longs, which accounted for over $40 million. Additionally, around $6 million in long positions on Dogecoin (DOGE) and $4 million in Solana’s SOL were also liquidated. This sudden drawdown caused Bitcoin exchange-traded funds (ETFs) to experience a net outflow of $86 million, breaking a four-day streak of positive inflows. Notably, Grayscale’s GBTC saw $302 million in outflows, outweighing the inflows from other funds and resulting in a net daily outflow of $85.7 million. In addition to the Bitcoin flash crash, the value of the stablecoin Tether (USDT) also experienced a brief wobble, falling from its $1 peg to $0.988. It is unclear whether this was an error in certain data trackers or if the currency actually suffered a sudden loss in value. Tether has not yet responded to inquiries regarding this issue.
Leveraged crypto liquidations soar to $165M following Bitcoin's sudden 5% flash crash