Bitcoin Roller-Coaster Triggers Over $600M in Crypto Liquidation as Price Dumps 7%

Key Points

• Bitcoin's rapid price decline led to more than $600 million in liquidations across the crypto market.
• The CoinDesk20 Index experienced a nearly 5% drop as the sell-off affected various digital assets.
• Despite the volatility, Coinbase users reported zero balances in their accounts, prompting an investigation by the company.

Bitcoin's roller-coaster price action triggered over $600 million in crypto liquidation. The sell-off echoed throughout all digital assets, resulting in the CoinDesk20 Index falling almost 5% on Wednesday.

Bitcoin's (BTC) breakneck rally quickly turned sour early Wednesday afternoon, with the price plunging 7% from a $64,000 high, turning into a bloodbath for leveraged traders. BTC rapidly surged earlier during the day, surpassing the $60,000 level for the first time since Nov. 2021. After hitting a high of $64,037, it abruptly fell to $59,400, the CoinDesk Bitcoin Index (XBX) shows. Its price had bounced back over $61,000 before another wave of sell-off pushed it again to near the same level. At press time, BTC was changing hands at $60,600.

The sell-off reverberated across the broader digital assets market, with the CoinDesk20 Index (CD20) dropping almost 5% after hitting a fresh all-time high of 2,260 earlier on Wednesday. Major cryptocurrencies in the CD20, such as ether (ETH), Solana's SOL, XRP, Cardano's ADA, dogecoin (DOGE) and Avalanche's AVAX also dropped as much as 4%-9% in an hour.

The sudden drop in crypto prices caused a total of over $600 million in liquidations for all digital assets, flushing out leveraged trading positions, CoinGlass data shows.

Meanwhile, amid the digital assets market's roller-coaster, some Coinbase users were surprised to see zero balances in their exchange accounts. The company has since confirmed the incident and is investigating the matter.

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