The strength of Bitcoin (BTC) pushed the asset to the critical $30,000 level for the first time since June 2022, resulting in heavy losses for traders betting on the downside.
More than 87% of all futures trades cleared in the last 24 hours were shorts or bets against rising prices. Losses from these transactions amounted to approximately $145 million in the process. His Huobi, a cryptocurrency exchange, saw his liquidation of over $45 million on its platform, followed by his corresponding Binance and OKX liquidations with his $35 million each.
The largest liquidation order occurred on Huobi, a Bitcoin/Tether trade worth $11 million.
Liquidation is the forced closure of a trader’s leveraged positions by an exchange due to the loss of some or all of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position (if there are not enough funds to keep the trade open).
A large liquidation may indicate a localized high or low of a sharp price move, and traders may be able to take positions accordingly.
Some say Bitcoin’s recent strength is likely due to deteriorating economic conditions, which could lead to the adoption of decentralized assets among investors.
“Bitcoin has been effectively disconnected from traditional markets since the beginning of the year, rising more than 80% during the stock market crash,” Alex Adelman, CEO of Bitcoin rewards app Lolli, told CoinDesk. said in an email. “Bitcoin’s strength compared to traditional markets shows that investors are increasingly shifting capital to Bitcoin and choosing Bitcoin instead of traditional investments to build wealth. I have.”
“The fact that today’s rise did not have a clear catalyst is a precursor to Bitcoin’s newly bullish market conditions and strong investor confidence. “Crypto Winter is entering a new phase of strength, suggesting renewed interest from both retail and institutional investors,” Adelman added.
