Bitcoin’s recent volatility has resulted in $311.53 million in total crypto liquidations within just 24 hours, with trading fluctuating between $92,000 and $95,000. This movement included a 2% rise followed by a 3% drop as Asian markets opened. Almost 79% of liquidations were from long positions, primarily impacting major exchanges like Binance, which saw $127.18 million liquidated. Bitcoin remained the top asset affected, followed by Ethereum. A significant single liquidation on Binance was valued at $8.21 million. Despite some decline in open interest, crypto liquidations continue to be high, reflecting ongoing Market instability that has impacted over 132,800 traders.
Bitcoin Price Volatility Triggers Major Liquidations
Bitcoin’s recent price swings have led to significant Market activity, with a total of $311.53 million in liquidations in just 24 hours. The cryptocurrency fluctuated between $95,000 and $92,000, first rising by 2% before experiencing a 3% drop as Asian markets opened.
According to Coinglass, long positions made up 78.82% of the liquidations, contributing about $245.55 million. Short positions accounted for $65.99 million. Binance experienced the highest volume of liquidations at $127.18 million, predominantly from long positions. Other exchanges like OKX and Bybit saw liquidations of $79.50 million and $52.87 million, respectively, also with a focus on long positions.
Bitcoin continues to dominate the liquidation scene with $44.91 million coming from long positions and $20.43 million from shorts. Ethereum followed closely, with $34.31 million liquidated from longs and $18.11 million from shorts. Additional cryptocurrencies such as Solana, XRP, and Dogecoin added to the overall liquidations, highlighting ongoing Market instability.
The largest single liquidation occurred on Binance, involving the BTCUSDT pair and valued at $8.21 million. Over 132,800 traders were affected. Despite slight declines in open interest, liquidations remain elevated, with open interest falling from $71 billion on December 18 to $60 billion currently.
This unprecedented volatility in Bitcoin is a reminder of the inherent risks in trading cryptocurrencies. Investors are advised to conduct thorough research and exercise caution.
Tags: Bitcoin, cryptocurrency, liquidations, Binance, Ethereum, Market volatility
Author: Liam ‘Akiba’ Wright, Editor-in-Chief at CryptoSlate
Disclaimer: The opinions expressed are those of the author and do not represent CryptoSlate. This article is not investment advice, and readers should conduct their own research.
What is happening with Bitcoin’s recent price changes?
Bitcoin has seen a sharp rise and fall in its price recently. This week alone, there were $311 million in liquidations, which means many traders lost money when they had to close their positions. This volatility can be shocking for investors.
Why are so many liquidations happening?
Liquidations happen when the price of Bitcoin drops suddenly. Many traders use borrowed money to invest, and if the value falls too much, they must sell their assets to cover losses. This selling can then cause the price to fall even more, leading to more liquidations.
What caused Bitcoin’s sharp rise and fall?
Multiple factors can lead to Bitcoin’s price changes, like Market news, economic trends, and investor behavior. A sudden negative news report or a large sell-off from major investors can trigger a quick drop in price.
Should I invest in Bitcoin during these ups and downs?
Investing in Bitcoin can be risky, especially during such volatile periods. It’s wise to do thorough research and consider your financial situation before investing. It may also help to consult with a financial expert.
How can I protect my investment in Bitcoin?
To protect your investment, consider setting stop-loss orders, which automatically sell your assets at a certain price. Keeping your investment diversified and not investing more than you can afford to lose are also good strategies. Regularly reviewing Market trends can help you stay informed.