Bitcoin Drops Under $84,000 as $487 Million in Leveraged Longs Get Liquidated in 24 Hours

AI summary of the source article

Bitcoin dipped below $84,000 late Tuesday, sliding from roughly $85,300 to a low near $83,550 on Coinbase exchange before trading around $84,000. CoinGlass data indicates that crypto liquidations reached $555.6 million over 24 hours, with $487.2 million stemming from forced closures of long positions. Prior to the slide, Lookonchain noted four newly created wallets opened 40x short positions totaling 148.49 BTC on Hyperliquid. Analysts cited profit-taking, high open interest, and elevated funding rates as key drivers making the market vulnerable to rapid deleveraging.

Why it matters

The drop demonstrates how elevated open interest and funding rates leave digital asset markets vulnerable to rapid cascading liquidations and deleveraging.

Key facts

• Bitcoin fell to a low near $83,550 on Coinbase before stabilizing near $84,000.
• Crypto liquidations totaled $555.6 million over 24 hours, with $487.2 million occurring on long positions.
• Four newly created wallets opened 40x short positions totaling 148.49 BTC on Hyperliquid shortly before the price drop.