CryptoQuant, a leading on-chain analytics platform, announced on social media platform X that approximately 7,500 Bitcoin long positions were closed on April 6, 2025. This liquidation marks one of the largest single-day long liquidations in the ongoing bull market.
Community believes that the reason for this liquidation is mainly because of heightened market volatility due to U.S. President Donald Trump’s economic policies, specially because of the tariff related uncertainties. The tariffs announcements fueled concerns regarding inflation and economic growth.
Despite being considered as a hedge against inflation, investors do panic, especially when the market is experiencing downturns. Many treat Bitcoin as a speculative asset rather than a stable store of value, this ideology leads to investors reacting with panic to price drops or geopolitical events.
Due to these circumstances, the price of Bitcoin fell below the $80,000 mark for the first time in 25 days, with a decline of 7% from its weekly peak of $86,000.
Bitcoin and Altcoins React to the Liquidation
The liquidation wave caused huge losses in the crypto market. Bitcoin experienced a loss, where over $322 million were wiped out due to forced liquidations. Ethereum had to experience the same pattern, and nearly $290 million were lost in ETH.
Other altcoins such as Solana and XRP also experienced losses, and lost almost $80 million in futures liquidations on the same day and the market lost $900 million in liquidations in just 24 hours. The majority of these losses were from long positions, which was totalling over $756 million.
Historical Parallels
Looking back it can be seen that the same pattern was observed on February 3, 2025. On this day, there were over $2.3 billion in leveraged crypto positions which were wiped out in a single day due to geopolitical restrictive monetary policies. Similarly, back in December 2024, the crypto community saw Bitcoin liquidations hit three-year highs during a price dump that erased $1.6 billion from the crypto market.
The crypto market as everybody knows is experiencing a roller coaster ride at the moment due to high volatility and global uncertainty. To get through these difficult times, traders are advised to be cautious, manage risks, and prioritize funds safely.
Bitcoin’s performance now will be the key factor navigating and determining the market’s direction. Investors on the other hand are requested to stay alert and adapt to these changing conditions so that they can make informed decisions moving forward.
Amid these market fluctuations, the price of Bitcoin currently stands at $77,191.40 with a dip of 2.4% in the last 24 hours as per CoinGecko.
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