Leverage Traders Face Massive Losses as Bitcoin Plummets to $62,000
Leverage traders in the crypto market are currently dealing with significant losses amounting to over $654 million. This occurred after Bitcoin (BTC) experienced a sudden drop to $62,000, marking a decline of more than 8% from its daily high.
The Impact of Liquidations on Traders
According to Coinglass, a crypto data aggregator, more than 232,029 traders have suffered liquidations totaling $654.34 million within the past 24 hours. The majority of these losses were incurred by leveraged long positions.
OKX and Binance: The Leading Exchanges in Liquidations
Crypto exchange OKX took the lead in terms of liquidations, with losses amounting to $244.55 million. Binance, the world’s largest crypto exchange, followed closely behind with liquidations totaling $239.60 million.
The Largest Single Liquidation Order on OKX
The most significant individual liquidation order occurred on OKX within the BTC/USDT pair, amounting to $12.25 million. This information was reported by Coinglass.
Bitcoin’s Price Movement and Recovery
Bitcoin is currently trading at nearly 14% below its recent all-time high of $73,737 that was reached on March 14th. Following its drop to around $62,000 on Tuesday, Bitcoin has experienced a slight recovery and is currently trading at $63,890.
Analyzing Bitcoin’s Sudden Dip
Pseudonymous crypto trader Rekt Capital suggests that Bitcoin’s sudden dip coincided with its entry into the “danger zone” before the halving event, where miners’ rewards are halved. Rekt Capital notes that historically, Bitcoin has experienced a significant correction approximately 14 to 28 days before the halving event. The next halving event is estimated to occur on April 15th.
Bitcoin’s Potential Price Range
Rekt Capital believes that Bitcoin could potentially drop as low as the $44,000 range based on its price action during the 2016 and 2020 market cycles. He suggests that a 20% drop from the current price of $65,348 would be interesting, amounting to a $13,000 downside. Alternatively, a deeper retrace of around 30% would result in a drop of approximately $21,000 from current levels.
Hot Take: Leverage Traders Hit Hard by Bitcoin’s Plunge
The recent plunge in Bitcoin’s price has had a devastating impact on leverage traders. With losses exceeding $654 million, many traders are facing significant financial setbacks due to liquidations triggered by the sudden drop in BTC’s value. This serves as a stark reminder of the risks associated with leveraged trading and highlights the importance of careful risk management strategies in volatile markets.
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