Bitcoin plunges below $92K as liquidations top $490M

TL;DR:

Bitcoin dropped below $92K, triggering over $490M in liquidations in the past 24 hours as ETH, SOL, and XRP also declined. The post Bitcoin plunges below $92K as liquidations top $490M 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.