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The cryptocurrency market witnessed a whirlwind of activity in the past 24 hours, with 164,213 traders facing liquidation, at press time, as Bitcoin (BTC) retraced from its recent highs.

Liquidations totalling a staggering $553.37 million underscored the volatility inherent in the crypto space, prompting a flurry of activity among investors and traders alike.

Late Monday night, Bitcoin’s price surged to dizzying heights, briefly touching the $68,500 mark, while Ethereum (ETH) followed suit, inching above $3,700.

However, this euphoric rally was short-lived as profit-taking ensued, leading to a sharp decline in prices during the early Asian trading hours.

Shortly after, Bitcoin plummeted to as low as $64,500 before clawing its way back to slightly above $66,600 at the time of writing.

This roller-coaster caused long positions to suffer losses exceeding $240 million, while shorts witnessed evaporated positions totalling $320 million.

The liquidation spree did not only affect Bitcoin and Ethereum as meme coins, including Dogecoin (DOGEE), Shiba Inu (SHIB), and Pepe coin (PEPE), also experienced an unprecedented $90 million in liquidations across various exchanges, adding to the market’s unpredictability.

Coinglass data reveals a surge in leveraged bets on crypto futures Open Interest nearing $70 billion over the past week.

Concurrently, funding rates on certain tokens have soared to over 100% annualized, indicating a heightened appetite for risk among traders.

Funding rates represent the fees traders pay when borrowing additional capital to amplify their trading positions.

The significant moves observed in SHIB tokens have raised concerns among analysts, who view such developments as potentially bearish signals. Historically, the outperformance of meme coins has coincided with local tops in Bitcoin prices, signalling speculative froth and potential market reversals.

The total liquidations, surpassing half a billion dollars, highlight the inherent risks associated with leveraged trading in the crypto market.

Margin calls, triggered by rapid price movements, resulted in significant losses for traders across various time frames.

The largest single liquidation order, valued at $8.23 million, occurred on Binance for the BTCUSDT trading pair, underscoring the magnitude of the market turmoil.

As Bitcoin’s price retracement continues to captivate market participants, the coming days are poised to witness heightened volatility.

Traders are bracing themselves for further price swings as Bitcoin approaches its all-time highs, with expectations of surpassing the $69,000 mark looming large.

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