Bitcoin Sees $500 Million Liquidation in Largest Bull Market Event
Bitcoin investors faced significant losses this week due to the largest long position liquidation during the current bull market. On April 6, over 7,500 BTC valued at more than $500 million were liquidated as prices fell from $83,000 to $74,000.
Key Highlights
- The liquidation on April 6 is noted as the highest since the start of the 2023 bull rally.
- Prices briefly stabilized around $78,000 after the drop, with minimal recovery observed.
- This event surprised many traders, particularly those using leverage.
The biggest Bitcoin long liquidation event of this bull cycle
“On April 6, approximately 7,500 Bitcoin in long positions were liquidated...” – By @Darkfost_Coc
Market Influences
- Concerns regarding US President Donald Trump’s economic policies are linked to the current market volatility.
- Reports indicate that the American stock market has experienced multi-trillion-dollar losses, totaling $10 trillion since Trump took office in January 2025.
Risk Management Warnings
- Analysts have advised caution in trading due to high volatility.
- Traders are urged to avoid high-risk or leveraged positions to protect capital.
Long-Term Outlook
- Some analysts predict bearish trends may last up to 12 months due to ongoing global economic uncertainty.
- Gold has risen 11% since Trump’s return to the presidency, while Bitcoin has dropped 25%, suggesting it has not yet achieved “digital gold” status.
- Despite short-term challenges, some remain optimistic about Bitcoin's long-term potential to capture a share of gold's market cap.
As of now, Bitcoin has reclaimed the $81,000 level, showing a 7% increase in the last 24 hours but a 2% decline over the past week.