Leverage Traders Hit Hard as Bitcoin Reaches New All-Time Highs and Plummets
Leverage traders in the crypto market are experiencing significant losses as Bitcoin (BTC) reached new all-time highs before suddenly reversing its gains. According to data from Coinglass, over $679 million in liquidations occurred in the last 24 hours, mostly affecting leveraged long positions. Binance, the world’s largest crypto exchange, saw the largest amount of liquidations at $213 million, followed by OKX with $68 million, Bybit with $21 million, and HTX with $16 million. The biggest single liquidation order took place on Binance for a value of $8.23 million in the BTC/USDT pair.
Bitcoin’s Price Surge and Speculation on Future Growth
Bitcoin broke its previous all-time high and soared above $69,000, sparking speculation about its future trajectory. Many believe that the crypto market has fully recovered from its worst bear market in history. Bitcoin researcher Dylan LeClair highlights the time it took for BTC to double in price after surpassing previous all-time highs:
- In December 2020: 18 days
- In March 2017: 84 days
- In November 2013: 10 days
- In March 2013: 18 days
The last time Bitcoin surpassed its all-time high, its price tripled in 103 days. If history repeats itself, BTC could reach $207,000. However, at the time of writing, Bitcoin is trading at $64,557.
Opportunity for Correction and Impact on Spot Market ETF Investors
Veteran trader DonAlt believes that a significant correction in Bitcoin’s price would be a gift to investors. He has been bullish on Bitcoin since the beginning of 2023. DonAlt expects spot market exchange-traded funds (ETFs) investors to quickly absorb any retracement in BTC’s price. He anticipates a sizable pullback, possibly between $45,000 and $50,000, due to the current frothy market conditions. DonAlt is not worried about this potential pullback as it would provide an opportunity for him to buy altcoins that have been performing well. He specifically mentions Dogecoin as a coin that he is interested in buying.
Hot Take: Leverage Traders Suffer Losses as Bitcoin Volatility Continues
Bitcoin’s recent surge to new all-time highs followed by a sudden drop has resulted in significant losses for leverage traders. Over $679 million in liquidations occurred within the last 24 hours, predominantly affecting leveraged long positions. Binance witnessed the highest amount of liquidations at $213 million, followed by OKX with $68 million. Despite the current volatility, Bitcoin’s price remains near its all-time high, leading to speculation about its future growth. Veteran trader DonAlt sees a potential correction as an opportunity for spot market ETF investors to enter the market. This ongoing volatility highlights the risks and rewards associated with leverage trading in the crypto market.
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