Bitcoin is at a critical juncture, as analysts warn that if its price drops below $60,000, approximately $1.78 billion in leveraged positions could be liquidated. This scenario is exacerbated by high leverage in Bitcoin perpetual futures, which not only increases volatility risks but also sets the stage for cascading liquidations across major exchanges. Moreover, with perpetual contracts making up a significant portion of Bitcoin trading, the market’s sensitivity to price fluctuations highlights the precarious position of overcrowded long positions under positive funding rates.
Bitcoin faces $1.78 billion liquidation risk if it drops below $60K
