Bitcoin Bulls Crushed: $500 Million Liquidation Shakes Market Confidence

Christian Encila

2 months ago

3 mins read

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Bitcoin investors recorded heavy losses this week following the largest long position liquidation in the current bull market. On April 6, more than 7,500 BTC with a value exceeding $500 million were erased across prominent trading exchanges as prices dropped from $83,000 to $74,000.

Record-Breaking Liquidation Event Hits Crypto Market

As CryptoQuant analyst Darkfost noted, this liquidation was the highest of all since the 2023 bull rally began. The forced selling was prompted by Bitcoin’s price dropping sharply on spot markets before stabilizing around the $78,000 level after the initial collapse. Recovery since then has been negligible with prices remaining around that level.

The statistics indicate that although similar liquidations have occurred previously over the last two years, none were of Monday’s magnitude. This rapid market shift took most traders by surprise, particularly those who had opted to leverage their potential gains.

The biggest Bitcoin long liquidation event of this bull cycle

“On April 6, approximately 7,500 Bitcoin in long positions were liquidated, marking the biggest single-day long wipeout of the entire bull run so far.” – By @Darkfost_Coc

Read more ⤵️https://t.co/eqW2JE8TWD pic.twitter.com/IEthwRDRVz

— CryptoQuant.com (@cryptoquant_com) April 9, 2025

Trump Economic Policies Linked To Market Volatility

Darkfost refers to increasing fears regarding US President Donald Trump’s economic policy as a main driver of the market volatility. His plans to enforce tariffs have generated broader financial uncertainty that spreads beyond cryptocurrency markets.

Reports show the American stock market has suffered multi-trillion-dollar losses for a few consecutive trading days this month. A report said US stocks lost $10 trillion in value just three months since Trump became president in January 2025.

Experts Warn Traders About Risk Management

The prevailing market conditions have seen analysts issue warnings regarding the risks of trading during times of volatility. Darkfost highlighted the need to safeguard capital when markets are volatile, urging traders to steer clear of high-risk or leveraged positions.

BTCUSD reclaims $81,000 region on the 24-hour chart: TradingView.com

For crypto investors, the message is one of caution rather than aggressive trading tactics. The swift price action illustrates how rapidly market conditions can shift, leaving unsuspecting traders with huge losses.

Long-Term Bitcoin Prognosis Is Still Mixed

Certain market observers foresee bearish patterns may be around for as long as 12 months because of continued global economic uncertainty. Ki Young Ju, the founder of CryptoQuant, observed that under uncertain conditions, more conventional safe-haven resources such as gold are better than cryptocurrency.

Ju noted that since Trump’s return to the presidency, gold has risen 11% in value while Bitcoin has fallen 25%. He contends this trend indicates Bitcoin hasn’t yet reached the status of true “digital gold” as a safe store of value.

In spite of these near-term worries, Ju is bullish on Bitcoin’s long-term prospects. He was confident that eventually, Bitcoin will gain a share of gold’s $20 trillion market cap, implying potential for long-term growth in spite of recent adversity.

At the time of writing, Bitcoin was able to reclaim the $81k level. BTC was up 7% in the last 24 hours, but sustained a 2% drop in the last week.

Featured image from Gemini Imagen, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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