Bitcoin Hits Record High, Triggers $361 Million Leveraged Trade Liquidation
Summary:
Bitcoin (BTC) hit a new all-time high of $73,050 which led to the liquidation of over $361 million in leveraged trades in the past 24 hours. The market turbulence mostly impacted long position holders, wiping out $258 million of investments. The market volatility was attributed to traders fearing a price correction, according to a spokesperson from 10x Research. The most liquidations, totaling to $152 million, occurred on crypto exchange OKX, while Binance traders suffered combined losses of $128.4 million. Bitcoin and Ether (ETH) accounted for the most liquidations at $106.3 million and $73.3 million, respectively.
In the past 24 hours, over $361 million in leveraged trades have been wiped out as Bitcoin (BTC) climbed to a record high of $73,050, before retracting to under $70,000 on March 12. The market turbulence primarily wiped out long positions - speculators who anticipated a price increase - taking out $258 million in investments, with short sellers losing just over $103 million, according to Coinglass, a crypto trading data platform. This represents the greatest long position wipe-out since March 5, when Bitcoin plunged to $60,800 after marking its previous high at about $69,000.
The barometer charting short and long cryptocurrency thrashings for the past six months reveals this volatility, though the impact was relatively dampened this time, with Bitcoin's value fluctuating only 4.85% between its March 12 lowest mark of $69,365 and highest point of $72,733, CoinGecko reports. At the time of this report, Bitcoin had steadied to about $71,400.
According to a spokesperson from 10x Research, this uptick in market flux could be driven by traders wary of a potential price adjustment, while the continued rally could be due to FOMO (Fear Of Missing Out), he added. They pointed out that futures open interest had risen by 5% over March 9 and 10th, likely initiated with tight stops.
In terms of liquidations, Bitcoin and Ether (ETH) saw the greatest losses over the period at $106.3 million and $73.3 million, respectively. Other significant liquidations were seen in Solana (SOL), Dogecoin (DOGE), and the Bitcoin-backed memecoin Ordi (ORDI).
The largest numbers of short and long liquidations took place on crypto exchange OKX, adding up to $152 million. Meanwhile, traders on Binance experienced a combined loss of $128.4 million.
The first 11 months of 2023 has seen short-sellers lose over $6 billion in their attempts to bet against publicly traded crypto companies, as Bitcoin rose by 130% to $37,800, according to research firm S3 Partners.
Published At
3/13/2024 5:02:35 AM
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