Over $2.7 billion worth of futures contracts got liquidated in the last 24 hours, based on data from Bybt.com. This caused the price of Bitcoin (BTC) to see a large drop in a short time frame as it plunged from over $41,000 to sub-$32,600.

BTC/USDT 4-hour price chart (Binance). Source: TradingView.comWhy would mass liquidations cause Bitcoin to drop?

In the futures market, liquidations of positions occur because traders are borrowing additional capital to trade with larger positions.

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