Bitcoin Cash (BCH) experienced a sharp, isolated price drop of over 5% in minutes, falling from over $482 to $457. The sudden plunge was linked to a large sell-off by an unknown entity, which data suggests disposed of over 60,000 BCH tokens. This triggered significant liquidations, with nearly $2.5 million in leveraged positions wiped out, including a single $2.15 million liquidation on Binance.
Bitcoin Cash abruptly fell more than 5% while the broader cryptocurrency market remained flat, according to trading data. The altcoin dropped from above $482 to $457 before finding some support near $459.
Analyst CW suggested the drop was caused by an entity selling over 60,000 BCH in a short period. This triggered an immediate and violent increase in selling volume.
Data from CoinGlass shows almost $2.5 million worth of leveraged BCH positions were liquidated in the past 24 hours. The vast majority, approximately $2.4 million, was wiped out during the sharp price decline.
This accounted for 10% of all market liquidations in the four-hour period when the drop occurred. The isolation of the move is logical given the lack of price action across other major cryptocurrencies.
The largest single liquidation event of the day involved BCH. A position worth $2.15 million was liquidated on Binance on the BCH/USDT trading pair.
