Bitcoin and AI Stocks Plunge: Over $500M in Long Positions Liquidated Amid Market Sell-Off

A sharp downturn in the cryptocurrency and artificial intelligence (AI) equity sectors has triggered massive liquidations, erasing more than half a billion dollars in leveraged bullish positions. The sell-off, impacting major assets like Bitcoin (BTC) and leading AI stocks, underscores heightened volatility and risk in speculative markets. Data from derivatives tracking platforms reveals a cascade of long position liquidations as prices fell rapidly, forcing traders to cover margins. This event highlights the fragile nature of highly leveraged bets during corrective phases and serves as a stark reminder for investors about market risk management. Analysts point to a combination of profit-taking and shifting macroeconomic sentiment as potential catalysts for the sudden drop.