Available data indicate that, amid the recent price decline, roughly $2.56 billion in bitcoin positions have been liquidated over the past few days.

Both short and long bitcoin liquidations remain well below the record $19 billion in crypto liquidations seen after U.S. President Donald Trump announced new tariffs on China. Still, analysts say the latest wave of wipeouts highlights how sensitive the crypto market has become to risk-off sentiment.

Markets also expect incoming Fed Chair Warsh to pursue a hawkish policy stance, which is lending support to the U.S. dollar and weighing on bitcoin prices.