According to data, after Bitcoin saw a wild ride, futures contracts worth more than $1 billion in cryptocurrencies were liquidated.
Since reaching a new all-time high, the price of Bitcoin has seen wild volatility.
Bitcoin has reached a new all-time high above $69,000 in the last day and a half. But in contrast to what some might have expected, the break was short-lived, and a crash happened shortly after.
The figure below illustrates the latest trends in the cryptocurrency’s price action:
The graph illustrates how severe the most recent decline in Bitcoin was and how the asset’s price briefly fell below $60,000. However, the cryptocurrency has quickly recovered since then, and it is currently trading above $67,000.
As customary, the remainder of the industry has seen similarly erratic pricing activity over the previous day. Given the sector’s extreme volatility, it’s not surprising that the futures market has seen chaos over the past day.
The market for cryptocurrency derivatives has seen a long squeeze in the last day.
Data from CoinGlass indicates that there has been a remarkably high number of liquidations in the cryptocurrency market in the past day.
The derivative platform forcibly closes a contract when it accumulates a specific amount of losses, terming it as “liquidated.”
In turbulent times, the platform is likely to liquidate a position, especially if the user utilizes substantial leverage.
The table below displays the sector’s liquidations over the previous day:
Bitcoin & Crypto Asset Sales
In the last day, contracts valued over a billion dollars have been liquidated. Large simultaneous liquidations are common in the cryptocurrency market because of the frequent high volatility of the coins, but the numbers today are excessive even by industry standards.
This demonstrates the volatile and wildly speculative environment the bitcoin market has been experiencing over the past 24 hours.
Since these futures have accounted for over 75% of liquidations, they have primarily affected long positions, causing the majority of the flush. Such events, known as “squeezes,” involve numerous liquidations within a short timeframe.
Due to Bitcoin experiencing a drop and then rising again, there has been both a long and a short squeeze in the last day, although the long squeeze has been considerably more intense.
Bitcoin and Ethereum have contributed less than half of all liquidations in terms of the individual contribution to the liquidation flood from the symbols, indicating that altcoins have been the subject of intense speculative attention.
