Crypto market volatility triggers $2.5 billion in bitcoin liquidations

Bitcoin investors liquidated $2.56 billion in recent days, according ​to data provider CoinGlass

Bitcoin investors liquidated $2.56 billion in recent days, according ​to data provider CoinGlass, as cryptocurrencies slumped following a sell-off ‌in other risk assets, including equities and precious metals.

The wipeouts ​in both short and long bitcoin positions are far below the record $19 billion in crypto liquidations the market experienced after U.S. President Donald Trump announced new tariffs on China. Even so, analysts say the fresh cascade of wipeouts demonstrates how sensitive the crypto market has become to risk-off sentiment.

While bitcoin is notoriously volatile, cryptocurrencies have been weighed down ​by fresh concerns about the AI trade and a sell-off ⁠in precious metals sparked by Trump’s announcement that he was picking Kevin Warsh as his Fed chair nominee.

“What we’ve seen the last few months is probably people taking ​a step back while they ⁠have to reassess their risk frameworks and how they operate in this market,” said Adam McCarthy, a senior research analyst at digital market data provider Kaiko.

Bitcoin fell as low as $104,782.88 during the October 10-11 period, ‌after setting a fresh record high just days earlier above $126,000.

It ‌has yet to regain those peaks, and was last trading at around $78,396, after falling more than 6% on Saturday. ‍Thin weekend liquidity also exacerbated downward moves over the weekend, Bitfinex analysts said in a Monday research report.