Bitcoin Liquidations Hit $1.2B as Credit Market Crisis Spreads to Crypto

The cryptocurrency market experienced significant turbulence as Bitcoin (BTC) faced massive liquidations totaling $1.2 billion. Market analysts are pointing to the "cockroach" problem in credit markets - where one negative revelation leads to multiple others - now impacting digital assets. This correlation between traditional finance troubles and crypto volatility highlights the growing interconnection between these markets. Major exchanges reported forced position closures across leveraged trades as BTC price volatility spiked dramatically. The liquidations represent one of the largest single-day events in recent months, signaling potential continued instability in both credit markets and cryptocurrency sectors.