Drop in Bitcoin Price Led to $250 Million Liquidation

The Bitcoin (BTC) price fell nearly 4 percent in the last 24 hours following continued profit taking ahead of the weekend, causing a market pullback that led to the liquidation of over $250 million in bullish bets.

BTC fell from a high of $72,500 yesterday to just over $69,000 early today, significantly paring the gains made for the token since Monday. This resulted in the overall market value falling by 5.5%.

The Fear and Greed Index, which tracks crypto market sentiment and volatility, reached the “extreme greed” level yesterday, a sign of local highs.

The index aims to measure reactions in the crypto market and emphasizes that extreme fear can present buying opportunities, while excessive greed can signal an impending market correction. The index shows that the “greed” environment currently prevails in the market and indicates that corrections in prices may continue.

According to CoinGlass data, bets on futures tracked by BTC suffered losses of $88 million, while losses of $44 million were recorded in ether (ETH) futures and approximately $15 million in SOL and DOGE futures.

Data shows that nearly 90% of all futures bets are bullish. Market conditions over the past few weeks, including global monetary policies and US political support, have suggested the bullish trend continues, with some investors targeting $80,000 for BTC in the coming weeks.

The liquidations come after bitcoin open interest reached record levels of more than $43 billion earlier this week.