Bitcoin's Price Drop Triggers $500M in Liquidations

A sharp drop in Bitcoin's price has led to a surge in liquidations across cryptocurrency markets, with over $500 million in leveraged positions wiped out. The decline was triggered by policy uncertainty stemming from U.S. tariff policy fluctuations and rising geopolitical risks.

According to CoinGlass data, the total amount of liquidated positions across all assets over the past 24 hours has exceeded $505 million, with Bitcoin accounting for $232 million and Ethereum for $126 million. The leading cryptocurrency fell roughly 4.6% from $67,600 to $64,435 in less than two hours during early Asian trading.

Tim Sun, senior researcher at HashKey Group, attributes the downturn to policy uncertainty, sticky inflation data, and rising geopolitical risks. 'In an environment defined by policy uncertainty, sticky inflation, and geopolitical risk, risk appetite has contracted significantly,' he explained. 'Assets with high volatility and high liquidity dependence were the first to face pressure, driving the broad correction in risk assets.'