On Wednesday, Bitcoin experienced a robust surge, increasing by more than $4,200 from its daily low. This 7.1% rise against the U.S. dollar pushed Bitcoin past the $66,000 mark, peaking at $66,461 per coin on Bitstamp. This significant movement led to a 6.2% increase in the overall cryptocurrency market, resulting in the liquidation of 51,567 traders on various crypto derivatives exchanges.

Bitcoin’s climb to $66,000 triggered a $127 million liquidation wave in the crypto derivatives market. By 3:45 p.m. Eastern Time (ET) on Wednesday, Bitcoin had reached $66,300 per unit, with a global trading volume of $34 billion over the past 24 hours. This price increase from the day’s low signifies a notable 5.2% rise over the past week against the dollar.

The initial surge on Wednesday was influenced by the U.S. Labor Department’s Bureau of Labor Statistics’ release of the consumer price index (CPI) report. On May 15, Bitcoin’s primary trading pairs included USDT, FDUSD, USD, USDC, and KRW, with the Korean won making up 2.36% of global Bitcoin trades. While the global average price of Bitcoin stood at $66,300, it traded at $67,632 on the South Korean exchange Upbit at 3:45 p.m. (ET).

The day’s substantial price increase led to significant trader liquidations. In the past 24 hours, $127.98 million in derivatives positions were liquidated, including $83.39 million in crypto short positions. This included $45.94 million in Bitcoin shorts and $17.88 million in Ethereum (ETH) shorts. Additionally, $6.27 million in PEPE shorts were liquidated.

This Bitcoin price uptick, driven by a favorable CPI report, triggered a wave of liquidations, particularly affecting those with leveraged positions. The $127.98 million in derivatives cleared off the market highlights the high-stakes nature of leveraged crypto trading. Significant price movements can result in either substantial gains or severe losses in a short time. The dynamics of leverage offer magnified returns but also pose massive risks, as demonstrated by the swift liquidation of numerous traders’ positions on Wednesday.