Cryptocurrency Market Experiences Long Squeeze After Bitcoin Plunge
The cryptocurrency market has seen significant volatility in the past day, resulting in a shakeup for the futures side of the market. Data from CoinGlass reveals that over $389 million in total liquidations have occurred in the past 24 hours. “Liquidation” refers to the forced closure of a contract after it incurs losses beyond a specific threshold. The recent downward volatility has led to a liquidation squeeze primarily affecting long positions, with over $333 million worth of contracts being liquidated. In contrast, earlier this month, short positions faced losses as Bitcoin rallied. Bitcoin had the largest share of liquidations, but Ethereum also saw substantial liquidations due to recent upward movement.
Binance & OKX Whales Suffer Losses, BitMEX Whales Show Smart Behavior
An analyst has noted an interesting distinction between BitMEX whales and those on Binance and OKX during this recent liquidation event. BitMEX whales closed their long positions around the time Bitcoin broke through the $44,000 mark, as reflected in the exchange’s Open Interest data. However, whales on Binance and OKX continued to hold their positions and faced liquidation when Bitcoin’s price plunged. This indicates that BitMEX whales made a smart move by taking profits before the downturn, while others experienced losses due to their prolonged positions.
Hot Take: Significant Liquidations Occur After Bitcoin’s Price Plunge
Data shows that the cryptocurrency market has witnessed substantial liquidations following a sharp decline in Bitcoin’s price. Long positions have been particularly affected, with over $333 million in contracts being liquidated. This is a reversal from earlier this month when short positions faced losses during a Bitcoin rally. The market volatility has also led to notable liquidations in Ethereum. BitMEX whales demonstrated smart behavior by closing their long positions before the price drop, while whales on Binance and OKX suffered losses. This event highlights the importance of managing risk and adjusting positions in response to market conditions.
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