Bloodbath on Crypto Street: Bitcoin Rout Triggers Billion-Dollar Liquidation Cascade

The crypto market was drenched in red on Friday as a violent sell-off liquidated nearly $2 billion from over-leveraged traders. Bitcoin led the charge downward, breaching the $82,000 level and shattering the market’s $3 trillion floor.

The data from CoinGlass tells a story of devastation: 396,000 traders were wiped out in the cascade. The scale of destruction is likely even greater than reported, as liquidation data from several major exchanges remains incomplete.

This is the second major blowup this month, creating a perfect storm of ETF outflows and macro fears. With Bitcoin now down more than 30% from its peak and heading for its worst Q4 in six years, the “crypto winter” of 2024 appears to be arriving early.