Crypto Liquidations Reach $190 Million
Bitcoin has experienced a pullback, but it hasn’t been as significant as bears anticipated. However, this unexpected recovery has caused many traders to suffer massive losses. In fact, liquidation volumes have surged to $190 million in just one day due to the prevailing uncertainty in the market.
Bitcoin’s Shakeout Triggers Liquidations
Data from Coinglass reveals that the 24-hour crypto liquidation volumes soared past $190 million as Bitcoin underwent a shakeout. The price initially pulled back to around $43,600 before quickly rising back to $44,000, completing the move.
Consequently, traders on both sides found themselves holding loss positions, leading to a significant increase in liquidations. Over 81,000 traders were caught in the red, resulting in losses exceeding $190 million. Notably, the majority of these losses came from long trades.
Long Traders Face Trouble as Bitcoin Declines
Long traders have borne the brunt of liquidations in recent days, and the situation shows no signs of improvement for them. As Bitcoin’s price briefly dipped below $43,000 before recovering to around $43,400, long liquidations continued to accumulate.
In the past four hours alone, short liquidations accounted for 91.05% of the approximately $47.83 million in recorded liquidations. Bitcoin, Ethereum, and ORDI led this trend and experienced substantial volatility throughout the past week. If Bitcoin’s recovery remains highly volatile, liquidation volumes will continue to rise.
Binance and OKX Lead Liquidation Volumes
The majority of liquidations occurred on Binance and OKX exchanges with volumes of $82.56 million and $60.51 million, respectively. ByBit exchange secured the third position with $27.05 million in liquidations within the last day.
Bitcoin is currently struggling to maintain support above $43,000, which explains the recent surge in liquidations. However, despite this setback, bulls remain dominant, and market sentiment continues to lean towards greed.
Hot Take: Bitcoin’s Unexpected Recovery Causes Massive Liquidations
Bitcoin’s recent unexpected recovery has led to significant liquidation volumes in the crypto market. Traders who were betting on a continued price rise incurred substantial losses as uncertainty persists. In just one day, liquidation volumes soared to $190 million, with the majority of losses coming from long trades. The top three cryptocurrencies leading the liquidation trend are Bitcoin, Ethereum, and ORDI. Binance and OKX exchanges have witnessed the highest liquidation volumes so far. While Bitcoin struggles to maintain its support above $43,000, bullish sentiment remains strong despite the increased volatility. As Bitcoin’s recovery continues to fluctuate, liquidation volumes are expected to rise further.
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