Title: Crypto Market Rollercoaster Leads to $640 Million Worth of Liquidations in Just Hours

Following a volatile morning in the crypto market, Bitcoin surged by 11% before a rapid plunge, leaving many traders reeling. Wednesday's turbulent trading session resulted in a staggering $640 million worth of crypto positions being liquidated in a matter of hours. Data compiled by CoinGlass revealed that approximately $309 million worth of crypto short positions and around $333 million worth of long positions were liquidated within the last 12 hours alone, with the majority, approximately $424 million, occurring in the last four hours.

Over the past day, a total of $700 million worth of crypto positions have been liquidated, with Bitcoin accounting for $262 million of the sum and Ethereum following closely behind at $109 million. Greg Magadini, the director of derivatives at blockchain analytics firm Amberdata, noted that such a large amount of liquidations in a short timeframe is not unusual when an asset experiences a sudden and significant rally like Bitcoin did on Wednesday. Magadini explained that this phenomenon, commonly known as a "blow-off top," occurs when leveraged traders are forced to liquidate their positions as prices start to decline, resulting in a cascading effect on the asset's price.

Despite the abrupt fluctuations, Bitcoin managed to recover slightly after dropping from above $63,600 to nearly $60,000 within an hour. At the time of writing, the cryptocurrency has bounced back to $61,000, reflecting a 7% increase in the last 24 hours. Traders are advised to stay updated on crypto news and receive daily updates in their inbox to navigate the ever-changing market conditions.