Bitcoin (BTC) experienced a sudden decline of 5% on April 12, resulting in losses of over $400 million for traders with leveraged positions in Bitcoin and other cryptocurrencies. In less than 60 minutes during the late New York session trading hours, BTC dropped from $68,341 to as low as $65,110. Similarly, Ether (ETH), the second largest cryptocurrency by market capitalization, followed suit and fell by 8% from an opening of $3,553 to trade at $3,226.
According to futures market data from Coinglass, the flash crash in Bitcoin led to the liquidation of over $417 million in leveraged positions within one hour. Of this amount, Bitcoin longs accounted for over $77.93 million, while Ether longs accounted for over $63.35 million. Binance experienced the highest number of liquidations, totaling $171 million, followed by OKX with combined losses of $158 million. Over the past 24 hours, a total of $860 million in liquidations among 270,993 traders were recorded.
The crash coincided with a dip in the U.S. stock markets during the U.S. trading session, following new data that showed a third consecutive month of accelerated inflation. This hotter-than-expected Consumer Price Index (CPI) print raised concerns about the possibility of Fed rate cuts this year and the potential slowdown in controlling elevated price levels. Jamie Dimon, CEO of JPMorgan Chase, expressed caution on April 12, warning that “persistent” inflation, geopolitical tensions, and the Fed’s Quantitative tightening efforts could pose a threat to the positive economic outlook.
Dimon stated in the bank’s first-quarter earnings results announcement that the market is likely to be weighed down by “persistent inflationary pressures, which may likely continue.” It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.