Recent data highlights that investors who have been holding cryptocurrencies for an extended period faced significant financial setbacks, with liquidations amounting to $365 million in just the past day, following a steep decline in Bitcoin's (CRYPTO:BTC) price under $66,000.

The cryptocurrency derivative market, in particular, has witnessed a surge in liquidations due to the market's volatile nature.

This phenomenon underscores the unpredictable landscape of the cryptocurrency market, with derivative traders experiencing pronounced impacts during this period of fluctuation.

The swift turn of events signifies the inherent risks associated with investing in cryptocurrency derivatives, echoing the need for caution among investors navigating this volatile space.