Ramazan Eles 
The price of Bitcoin (BTC) took a sharp turn lower on Friday, falling below the $68,000 mark after reaching a record high above $73,000 just a day earlier. This significant price swing caused a spike in liquidations of leveraged Bitcoin positions.
Bitcoin Suffers 8% Drop in 24 Hours
Over the past 24 hours, the value of the leading cryptocurrency by market capitalization has dropped by more than 8%. As of 5:40 AM ET, Bitcoin is trading at $67,016.
Volatility Sparks Long Liquidations
The rapid price correction triggered a wave of liquidations on centralized exchanges, primarily impacting long positions. According to data from CoinGlass, over $278 million in Bitcoin positions were liquidated due to the volatility, with the majority (around $225 million) being long positions.
Ether and Solana See Mixed Results
The price of Ethereum (ETH), the second-largest cryptocurrency, also experienced an 8% decline over the past day, currently sitting at $3,662 (5:40 AM ET). However, Solana (SOL), the native token of the Solana blockchain, bucked the downtrend with a modest 0.5% gain in the same period, as per The Block’s Prices Page.
Liquidations Grip the Market
Looking at the broader crypto market, CoinGlass data reveals that over $667 million in long positions were liquidated in the last 24 hours. This contributed to a total liquidation volume of $809 million across various centralized exchanges.
What are Liquidations?
Liquidations occur when a trader using leverage experiences a margin call. This happens when a position moves against the trader, causing their initial margin or collateral to deplete. If they lack the necessary funds to cover the losses, the exchange forcibly closes their position to prevent further losses.