A wild frenzy hit the crypto market on Monday. Due to geopolitical news, Bitcoin’s price swung wildly within four hours, and as a result, positions worth $415 million were liquidated. Mainly Bitcoin, but also ether and tokenize petrol contracts, suffered large losses.

The incident unfolded as follows: Trump announced that he would delay attacks on Iran’s energy plants by five days. On the back of this news, Bitcoin quickly surged from $67,500 to $71,200. Leveraged traders took positions on this rise. However, a few minutes later, after Iran denied the claim, the crypto market reversed. Bitcoin pulled back by about $1,200.

According to data, the liquidation rate was intriguing. Short-position liquidations totaled $280 million, while long-position liquidations came to $135 million. This indicates that after Trump’s announcement, the market expected a rise, but the second report’s direction could not be predicted. Bitcoin saw $140 million liquidated, ether saw $120 million liquidated. Oil futures were also liquidated at around $64 million.

In fact, this showed just how fragile the crypto market is due to the dominance of derivative products. Compared with spot trading, futures trading volume is five times larger. This means that whenever any headline changes, liquidation chains are triggered in both directions. Even though the net price movement was moderate, leveraged investors suffered significant losses.

Meanwhile, by Monday evening, Bitcoin stabilized at around $70,000. It recorded a 2.3% gain during the day. But these swings show that in the crypto market, just as important as how quickly news moves is, risk management is just as critical.