Bitcoin (BTC) experienced a significant price drop of over $2,000 in just one hour on May 10, causing a sudden surge of volatility in an otherwise calm market. Leveraged long traders were caught off guard as BTC price plummeted from a high of $63,494 to an intra-day low of $60,308, as shown by data from Cointelegraph Markets Pro and TradingView.
At the time of writing, the losses continued to mount, with Bitcoin losing more than 2.5% of its value over the past 24 hours. Michaël van de Poppe, the founder of MN Capital, remarked that this was part of the final accumulation phase that has become a common occurrence for Bitcoin since the halving. He also noted the low volatility and choppy price action that BTC has exhibited since February 29, and explained that the recent crash brought Bitcoin back to an important support level.
Another well-known trader, Daan Crypto Trades, suggested that BTC’s flash crash to $60,000 on May 9 was a swift move to punish those who had entered long positions above $63,000.
Unfortunately, those who had bet on a continuation of BTC’s recovery above $64,000 suffered significant losses on May 10. Long positions worth $127 million were liquidated during the downturn, contributing to a total wipeout of $175.17 million within 24 hours, according to data from Coinglass.
In the past hour alone, $9 million worth of BTC leveraged positions were liquidated, with $6.36 million of these being longs.
It is important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.