Bitcoin rebounds off $49k as over $1 billion liquidated in 24 hours

Bitcoin experienced a sharp decline from $61,000 to $49,000 within 24 hours before rebounding to approximately $52,000 as of press time. The price drop triggered significant market liquidations, with total losses reaching $1.06 billion, according to Coinglass. Long positions were heavily affected, accounting for $902.16 million, while short positions saw $153.18 million in liquidations.

Breaking down the liquidations by asset, Bitcoin positions suffered $359.06 million in liquidations, while Ethereum positions recorded $344.33 million. Ethereum declined over 20% within the same period. This data reflects a significant market correction, impacting leveraged traders. The rebound to $52,000 suggests a potential stabilization, but the recent volatility underlines the market’s inherent risks as global instability increases and the Japanese yen continues to struggle.

The Japanese yen has surged to a seven-month high, trading at around 145.25 per dollar, driven by weak US jobs data that heightened fears of an economic slowdown and expectations of deeper rate cuts by the Federal Reserve. This yen appreciation has significantly disrupted the yen carry trade, where investors borrow in low-yielding yen to invest in higher-yielding assets. The unwinding of these trades has led to a global sell-off, with Japan’s Nikkei 225 index plunging nearly 7% and other Asian markets following suit. The turmoil has extended to emerging market currencies, with the Mexican peso falling as much as 2% against the dollar.