The cryptocurrency market experienced liquidations exceeding $1 billion within the last 24 hours. Bitcoin (BTC) 
$60,983 plunged from its historic peak of over $103,000 on Thursday to approximately $90,000 early Friday morning. This decline occurred due to an increase in profit-taking activities.
Bitcoin and Ethereum Faced Major Liquidations
In Bitcoin futures, around $500 million worth of net liquidations took place, with $420 million stemming from long positions. Ethereum (ETH) 
$1,623 futures recorded liquidations amounting to $85 million. Liquidations occur when a trader fails to maintain sufficient funds to keep their leveraged position open, leading exchanges to forcibly close the position.
According to cryptocurrency exchange data, over 156,000 traders were liquidated. The largest single liquidation occurred on the OKX exchange, involving an $18 million BTC/USD position. It was reported that 89% of the affected traders held long positions, indicating that the cryptocurrency market had adopted an overly optimistic sentiment expecting upward movement.
DOGE and XRP Also Suffered Declines
In addition to Bitcoin and Ethereum, Dogecoin 
$0.076106 (DOGE) and XRP experienced a total liquidation of $50 million in their futures. Both altcoins had reached record levels due to recent rallies, but the subsequent correction led to sharp declines in their prices.
Moreover, the total amount of open interest (OI), referring to the aggregate of active futures contracts, is noteworthy. The recent correction has resulted in substantial reductions in these positions. Rising OI is interpreted as new capital entering the market, while declines suggest a shift in investors’ risk perceptions.
Finally, the popular crypto fear and greed index dropped from an “extreme greed” level to a “greed” level. This marks the lowest point in the past 30 days. The index typically reflects the emotional state of market participants and helps determine local market bottom or peak levels.
