Market volatility has led to over $138 million in liquidations of leveraged positions on centralized exchanges in the past 24 hours.

The majority of these liquidations were long positions, resulting in a loss of over $120 million.

The price of Bitcoin has dropped over 2.5% in the past day, falling below $41,000.

Bitcoin's volatility has increased, with annualized volatility now over 52%, leading to nearly $30 million worth of leveraged Bitcoin positions being liquidated.

The circulating supply of Bitcoin in profit has fallen from over 90% to just over 83%.

Former CEO of BitMEX, Arthur Hayes, bought put options to hedge against Bitcoin's downside.

Movements of BTC out of institutional products or transferred to alternative products have contributed to the recent volatility.

Bitcoin ETPs in Canada and Europe saw net outflows of around 5,000 BTC following the approval of spot ETFs.

Galaxy Digital CEO Mike Novogratz expects Bitcoin's volatility to decrease in around six months.