Bitcoin hits $94K after $420M in liquidations and geopolitical risk bid

TL;DR:

Bitcoin broke $94K after $420M in liquidations and geopolitical tension sparked a sharp rally across major crypto tokens. The post Bitcoin hits $94K after $420M in liquidations and geopolitical risk bid appeared first on Crypto Briefing.

Key Points:

Background:

Cryptocurrency liquidations occur when leveraged trading positions are automatically closed by exchanges due to insufficient margin. Large-scale liquidation events, often called liquidation cascades, can trigger dramatic price movements as positions are forcefully sold or bought back.

Why It Matters:

Liquidation events reveal the extent of leveraged positions in the market and can cause or accelerate significant price volatility. Understanding liquidation dynamics helps traders assess market risk and potential volatility triggers in cryptocurrency markets.