Bitcoin Price Rises by Over 1% in 24 Hours
The value of the largest cryptocurrency by market cap increased over 1% in the past 24 hours, trading at $63,559 at 7:50 a.m. ET, according to The Block’s Price Page.
The price of bitcoin has climbed back above the $63,000 mark. Image: The Block.
Volatility Leads to Liquidation of Bitcoin Positions
The price action over the past day led to substantial liquidations of both long and short positions on centralized exchanges. This volatility resulted in the liquidation of more than $150 million in bitcoin positions, with over $78 million bitcoin longs and over $72 million shorts liquidated, according to CoinGlass data.
Ether and SOL Experience Mixed Results
The second-largest crypto, ether, experienced a muted 0.3% increase over the past day — now standing at $3,262 at 7:48 a.m. ET. However, SOL, the native coin of the Solana network remains in the red, falling over 2% in the same period, according to The Block’s Prices Page.
Over $275 Million in Liquidated Long Positions
The overall crypto market experienced over $275 million in liquidated long positions in the last 24 hours, contributing to a total of $428 million in liquidations across various centralized exchanges, the data show.
Liquidations occur when a trader’s position is forcibly closed due to a lack of funds to cover losses. This happens when market movements are unfavorable to the trader’s position, leading to the depletion of their initial margin or collateral.
Hot Take: Bitcoin’s Volatility Sparks Liquidations
Bitcoin’s recent volatility has caused significant liquidations in both long and short positions. While the price of bitcoin has increased by over 1% in the past 24 hours, reaching $63,559, this upward movement has resulted in the liquidation of more than $150 million in bitcoin positions. CoinGlass data shows that over $78 million worth of bitcoin longs and over $72 million worth of shorts have been liquidated.
Ether, the second-largest cryptocurrency, experienced a minimal increase of 0.3% during the same period, reaching $3,262. However, SOL, the native coin of the Solana network, suffered a 2% decline. These mixed results highlight the volatility of the crypto market.
The overall market saw over $275 million in liquidated long positions in the last 24 hours alone. This contributed to a total of $428 million in liquidations across various centralized exchanges. These liquidations occur when traders are unable to cover their losses and their positions are forcibly closed. It is a result of unfavorable market movements that deplete their initial margin or collateral.
Bitcoin’s price surge and subsequent liquidations demonstrate the risks involved in trading cryptocurrencies. Traders must be prepared for sudden and significant market fluctuations that can lead to substantial losses.
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