Bitcoin Plunges, Over 250,000 Positions Liquidated — What Just Happened?

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The cryptocurrency market experienced another rollercoaster night as Bitcoin suddenly crashed, wiping out hundreds of thousands of leveraged positions and sending shockwaves across digital asset investors worldwide.

On April 14, Beijing time, Bitcoin plummeted below the $60,000 mark, briefly dropping to $59,968 — a 24-hour decline exceeding 9%. The most dramatic drop occurred in just 15 minutes, when the price fell nearly $5,000 (approximately 36,187 RMB), triggering a wave of margin liquidations. Investors flooded with "liquidation alerts" watched helplessly as their positions evaporated amid the panic sell-off.

One affected trader shared: "Bitcoin has been swinging wildly between extreme highs and lows. At these elevated prices, the market becomes dangerously fragile. Sentiment can flip in an instant — money disappears faster than water."

As of the latest data, Bitcoin is trading around $62,649, still down over 9% in the past 24 hours.

Market-Wide Sell-Off: Altcoins Follow Suit

The downturn wasn’t isolated to Bitcoin. The entire crypto market saw sharp declines:

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According to Coinglass, over the past 24 hours, 258,000 positions were liquidated, with total losses amounting to **$966 million**. Of this, long positions accounted for $787 million in losses, while short positions saw $179 million in liquidations — indicating some short-sellers also got caught in the chaos.

This isn’t the first time this week the market has shaken. On April 13, Bitcoin dropped over $2,000 in a matter of minutes, falling from $67,100 to below $65,000.

Why Did Bitcoin Crash?

Multiple factors appear to be converging to trigger this sudden downturn.

1. Geopolitical Tensions Escalate

A major catalyst was the escalation of Middle East tensions. On April 14, Iran launched a large-scale missile and drone attack on Israel. The Islamic Revolutionary Guard Corps confirmed the operation targeted Israeli sites in response to earlier incidents.

Israel responded swiftly. Prime Minister Benjamin Netanyahu posted on social media: "We intercepted. We blocked. We will win together." This marked his first public comment after the attack.

By 12:30 PM Beijing time, Israeli airspace reopened, suggesting the immediate threat had passed.

Crucially, U.S. President Joe Biden stated that America would not participate in any retaliation and urged Israel against launching a counterattack. This move helped calm global financial markets to some extent but not before risk-off sentiment spilled into crypto.

Cryptocurrencies, despite being decentralized, are increasingly correlated with macroeconomic and geopolitical developments — especially during periods of uncertainty.

2. Bitcoin Halving Looms: Profit-Taking Ahead?

Another key factor is the approaching Bitcoin halving event, expected in just under seven days — around April 20 — with only about 996 blocks remaining.

Bitcoin halving reduces mining rewards by 50%, effectively cutting new supply in half approximately every four years. Historically, this has led to bullish cycles months after the event due to reduced inflation.

However, pre-halving periods often see increased volatility and profit-taking, especially when prices have run up significantly beforehand.

Rekt Capital, a well-known crypto analyst, noted that Bitcoin typically sees pullbacks before halving. In both 2016 and 2020 cycles, Bitcoin corrected by 38% and 20%, respectively.

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Moreover, JPMorgan’s latest report warns that halving could severely impact miner profitability, potentially pushing Bitcoin down to $42,000 — a drop of over 36% from current levels if demand doesn’t compensate for reduced supply growth.

3. ETF Inflows Slow Down

Another bearish signal comes from Bitcoin spot ETFs.

SoSoValue data shows that on April 12 (U.S. Eastern Time), Bitcoin spot ETFs saw a net outflow of $55.07 million**. Grayscale’s GBTC alone lost **$166 million in a single day. While BlackRock’s IBIT gained $111 million in inflows, overall momentum is slowing.

As of April 12, total assets under management for Bitcoin spot ETFs stood at **$56.22 billion**, holding approximately **831,000 BTC**, valued at around $59 billion.

While ETFs drove a massive rally in Q1 2025 — with over $12 billion in inflows and Bitcoin up 69% for the quarter — recent outflows suggest institutional appetite may be cooling temporarily.

Long-Term Holders Are Cashing Out

On-chain data from Glassnode reveals another worrying trend: long-term holders are exiting.

Since Bitcoin surpassed $40,000 at the end of 2023, addresses holding BTC for more than 155 days have steadily reduced their holdings. In contrast, short-term holders (in possession for less than 155 days) have increased their positions.

Collectively, long-term holders have sold off approximately 900,000 Bitcoins during this period — a strong signal of profit realization at peak prices.

This shift suggests growing caution among seasoned investors who may believe the current rally has priced in too much optimism.

What’s Next for Bitcoin?

With halving just days away, markets are likely to remain highly sensitive to news flow and sentiment shifts.

Historical patterns suggest:

Traders should prepare for continued turbulence and avoid excessive leverage during such high-risk windows.

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Frequently Asked Questions (FAQ)

Q: What caused the recent Bitcoin crash?
A: The crash was triggered by a combination of escalating Middle East tensions, slowing Bitcoin ETF inflows, and pre-halving profit-taking by long-term holders.

Q: How many people were liquidated in the last 24 hours?
A: Over 258,000 traders were liquidated, with total losses reaching $966 million across both long and short positions.

Q: When is the next Bitcoin halving?
A: The fourth Bitcoin halving is expected around April 20, 2025 — occurring after approximately every 210,000 blocks are mined.

Q: Could Bitcoin really fall to $42,000?
A: According to JPMorgan analysts, yes — if post-halving demand fails to offset reduced miner selling pressure and declining ETF inflows continue.

Q: Are Bitcoin spot ETFs still driving price action?
A: They were a major force in Q1 2025 with over $12 billion in inflows, but recent net outflows suggest short-term momentum has weakened.

Q: Is it safe to trade during the halving period?
A: Trading around halving events carries high risk due to volatility. It’s advisable to reduce leverage, diversify holdings, and follow on-chain metrics closely.

Core Keywords:

The current market environment underscores a critical truth: even in mature crypto cycles, sentiment can shift overnight. Whether you're a day trader or long-term investor, staying informed and managing risk is more important than ever.