1005 Alcyon Dr Bellmawr NJ 08031
+1 484-446-2566
support@bmcpros.com
Data shows that the cryptocurrency derivatives market has seen a lot of liquidation after the influx of Bitcoin to a new all-time high (ATH).
Bitcoin has gathered into new price record
After a long merger under ATH, Bitcoin finally broke a new record. Despite its briefness, BTC’s move saw it hit $112,000.
The following chart shows the recent performance of the asset:
The price of the coin appears to have shot up over the last 24 hours | Source: BTCUSDT on TradingView
As shown, Bitcoin has seen a small portion to $111,000 since the ATH setting surges. In typical ways, this shift from original digital assets has caused a bullish wave across the field, with altcoins observing their own jumps.
Many of them outperformed BTC, including Ethereum (ETH), with profits of about 4.5% over the past day. The performer in the top coin is SUI (SUI), with an increase of more than 9% observed in this window.
With bullish price action in the industry, investors bet on bearish results in derivatives, which took a natural blow.
Crypto market liquidation has exceeded $500 million
According to Coinglass data, derivative exchanges have registered a large number of liquidations in the past 24 hours. The following is a table showing the relevant numbers.
Looks like the liquidations have heavily tended towards short positions | Source: CoinGlass
Overall, the entire cryptocurrency market faces nearly $528 million in liquidation during this period. Of these, only the short sellers liquidated $453 million (85% of the total).
As far as individual symbols are concerned, Bitcoin and Ethereum contributed the most to compression, with liquidation of $225 million and $148 million respectively.
The breakdown of the liquidations by symbol | Source: CoinGlass
Large-scale clearing events like this are not particularly rare in the cryptocurrency industry, as coins are relatively volatile and have extreme leverage that is easy to use.
In the past few weeks alone, there have been several major short squeezes. However, according to Analytics’ Glass Festival figures, the latest events see different behaviors in open interest. “Open Interest” is an indicator that tracks the total number associated with Bitcoin, which positions are currently open on all centralized derivatives platforms.
When large-scale liquidation events occur, it is not uncommon to see open interest decline as investors are liquidated or exited the market. This occurs in the last two short squeezes and the latest one.
The trend in the BTC Open Interest over the last few weeks | Source: Glassnode on X
However, it is evident from the chart that although interest in opening after previous rally still declined, it rebounded quickly after the initial decline during the latest rally. This trend may indicate a new long position in the industry.
Featured images from dall-e, coinglass.com, charts from tradingview.com
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.