Cryptocurrency bulls face $440 million liquidation as Bitcoin plunges

Summary

• Bitcoin’s fall below $64,000 caused futures traders to lose more than $440 million, with massive liquidations on Binance and OKX exchanges.
• Major cryptocurrencies such as Ethereum, Solana and Dogecoin also suffered losses, with Bitcoin expected to fall further to $55,000 amid record high GBTC outflows from Grayscale.

Bitcoin (BTC) temporarily fell below $64,000, forcing cryptocurrency futures traders betting on higher prices to liquidate more than $440 million. Some traders predict that Bitcoin could fall to the $55,000 level in the short term.

According to data from Coinglass, long bets on Bitcoin resulted in losses of up to $100 million, while long liquidation losses on Ethereum (ETH), Solana’s SOL, and Dogecoin (DOGE) were even higher. to $120 million.

Data shows that Binance has the largest liquidation amount at $212 million, followed by OKX at $170 million.

Most liquidations were long, amounting to $454 million, with just $87 million short.

Over the past month, the market has seen an increase in liquidations on both longs and shorts. The chart below shows the daily clearing volume across the market since September. Across major cryptocurrency exchanges, Bitcoin short leverage has been in excess over the past 30 days. While current funding rates remain positive, this could change if bears continue to put pressure on Bitcoin’s price.

However, total leverage on the longer timeframe shows that the key zone for bull leverage is around the $50,000 mark. Most of the leverage between $73,000 and $50,000 has now been flushed out. However, there is still a huge range just below $60,000.

Looking at the 24-hour leverage heat map, we see traders eager to get back into the market amid the current volatility. Previously, violent price swings had almost completely cleared leverage around liquidation levels. However, traders will place new long and short leveraged positions at each new support and resistance level.

Bitcoin started to fall during Monday’s U.S. session as Grayscale’s GBTC outflows hit an all-time high of over $640 million. Inflows to other products were just under $500 million, with the market seeing net outflows of $15 million on Monday.

CoinGecko data shows that major coins have fallen as much as 11% in the past 24 hours. ETH, SOL and Cardano’s ADA fell as much as 8%. The broader CoinDesk 20, which measures a variety of major coins minus stablecoins, fell 8%.

Liquidation occurs when an exchange forces the liquidation of a trader's leveraged position due to a partial or total loss of the trader's initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position, i.e. when they do not have enough funds to maintain the trade.

Meanwhile, some traders said they expect Bitcoin to fall to as low as $55,000 in the coming weeks, although they are optimistic about the long-term bullish outlook.

Ledn Chief Investment Office John Glover told CoinDesk in an email: “The pace of recent appreciation makes it difficult to predict when the adjustment will be completed, but I do expect that in the next round The price will fall to $55-62,000 before rising.”

Source丨Coindesk

The above is the detailed content of Cryptocurrency bulls face $440 million liquidation as Bitcoin plunges. For more information, please follow other related articles on the PHP Chinese website!