Bitcoin’s 5% flash crash to $118k triggers $577 million liquidation in 1 hour

Bitcoin’s price experienced a sharp pullback on Aug. 14, dropping below $120,000 less than a day after reaching a new all-time high above $124,000.

According to CryptoSlate data, BTC fell to $118,479 at press time, marking a 2.07% decline on the 1-hour candle and 5% from its 24-hour peak.

The sudden dip rippled across the broader crypto market. Ethereum fell 4% to $4,581, while XRP dropped over 3% to $3.11. Other top-ten coins, including Dogecoin, Solana, and BNB, also saw losses exceeding 3% in the same timeframe.

This correction follows a period of sustained bullish momentum that had pushed the broader market to record highs. While the speed of the decline may have surprised some traders, market analysts had flagged potential risks.

On Aug. 13, blockchain analytics firm Glassnode highlighted that open interest across major altcoins had surged to a record high of $47 billion.

Top Altcoins Open Interest (Source: Glassnode)

According to the firm, such elevated leverage can magnify upward rallies and downward corrections, exposing traders during sudden market swings.

Long traders lose over $500 million in 1 hour

Data from Coinglass reveals that the sharp price movements triggered $577 million in liquidations within just one hour.

Long traders, who expected prices to climb further, bore most of the losses, totaling $545 million. Short positions lost $31 million.

Ethereum traders suffered the most, with liquidations exceeding $177 million. Bitcoin traders lost around $113 million, while XRP and Solana positions were liquidated for $44 million and $39 million, respectively.

Crypto Market Liquidation on Aug. 14 (Source: CoinGlass)

When the liquidation window is expanded to the past 24 hours, total losses reach $1.05 billion. Long positions account for $778 million of that figure, underlining the heightened risks during periods of rapid price adjustments.

These figures highlight the extreme volatility inherent in crypto markets. Sudden corrections can erase significant unrealized gains, especially when leveraged positions dominate trading activity.

For traders, this is a reminder that strong uptrends are often accompanied by equally sharp pullbacks, emphasizing the importance of risk management strategies in volatile markets.

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