Leveraged traders are currently facing losses exceeding $165 million due to a 5% drop in Bitcoin's price. This sudden decline occurred within a span of less than two hours, causing significant financial setbacks for traders involved in leveraged positions on Bitcoin and other cryptocurrencies. The price of Bitcoin plummeted from $69,450 to as low as $65,970 in less than 30 minutes on March 2nd, according to data from TradingView.

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Bitcoin tumbled over 5% in a sudden tumble on April 2. Source: TradingView

Coinglass data reveals that the rapid decrease in Bitcoin's price resulted in over $165 million worth of leveraged positions being liquidated. Of this amount, approximately $50 million was attributed to Bitcoin long positions, while more than $40 million was associated with Ether longs. Additionally, around $6 million in long positions on Dogecoin and $4 million in Solana were liquidated.

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Bitcoin’s sudden drawdown caused a $165 million leverage flush. Source: CoinGlass

Simultaneously, Bitcoin exchange-traded funds (ETFs) experienced a net outflow of $86 million, ending a four-day streak of positive inflows. Notably, BlackRock's ETF emerged as the top-performing fund with a net inflow of $165.9 million, followed by Fidelity with $44 million. However, these inflows were offset by Grayscale's GBTC, which recorded $302 million in outflows, resulting in a net daily outflow of $85.7 million for all funds.

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Tether experienced a brief wobble on some price tracking sites. Source: CoinGecko

In conjunction with the Bitcoin flash crash, the value of the stablecoin Tether briefly fluctuated around 1%, momentarily dropping from its $1 peg to $0.988. It remains uncertain whether this fluctuation was caused by an API error in certain data trackers or if the currency's value genuinely experienced a sudden decline. Nonetheless, this brief deviation from its peg was not reflected on other price tracking platforms.