Bitcoin
Bitcoin Bloodbath Triggers $374 Million Liquidation Surge: What’s Next for Crypto?
The cryptocurrency market saw a sharp increase in liquidations on Wednesday, triggered by the significant drop in the price of Bitcoin below the $60,000 mark. In the past 24 hours, a total of 132,091 traders were liquidated, resulting in a total losses amounting to $374.81 million.
Bitcoin’s sharp decline
Bitcoin, the leading cryptocurrency, faced intense selling pressure, falling below $60,000 and hitting a recent low of around $57,110. The market witnessed over $99.37 million in liquidations of long positions on centralized exchanges alone, out of a total of $113.75 million liquidated in BTC positions.
However, the largest single liquidation order occurred on Binance, involving $18.48 million worth of ETH/USDT, according to the Coinglass report.
Ether and other cryptocurrencies
Ether (ETH), the second largest cryptocurrency, also faced substantial liquidationswith over $97.55 million liquidated, including $89.77 million in long positions.
Liquidations occur when a trader’s position is automatically closed due to insufficient funds to hold it, usually caused by market fluctuations that erode their initial margin or collateral.
Derivatives traders remain bullish
Despite recent market declines, derivatives traders remain optimistic, particularly for Ether. Analysts at QCP Capital noted a bullish sentiment in the options market, with a strong focus on Ether calls for September and December expiries.
Furthermore, the early approval of the Ethereum exchange-traded fund (ETF) S-1 forms could trigger a significant rally in Ether prices.
On the other hand, Bitcoin miners are showing signs of capitulation, historically indicative of price bottoms. Recent data suggests that miners have been under significant pressure, with daily revenues falling sharply from $79 million in March to $29 million.