Emily Walker
Recent data indicates that the cryptocurrency derivatives market has experienced significant liquidations due to Bitcoin’s fluctuating prices over the last day.
Bitcoin Experiences Significant Price Fluctuations in 24 Hours
Over the past 24 hours, Bitcoin’s price has shown extreme volatility, reaching an all-time high (ATH) close to $90,000 before dipping to around $85,000.
The following chart illustrates the recent price movements of the cryptocurrency.
Notably, after hitting the $85,000 low, Bitcoin has rebounded to $88,500, indicating a recovery from its earlier decline.
As Bitcoin’s price fluctuates, other cryptocurrencies in the market react similarly, leading to a chain of volatility across the sector.
This rapid change has led to disorder in the derivatives market, with traders attempting to forecast the price direction, resulting in many being caught off guard.
Close to $1 Billion in Cryptocurrency Liquidations
Data from CoinGlass reveals a significant number of liquidations in the market over the past day. “Liquidation” occurs when a contract incurs losses beyond a certain threshold, prompting the trading platform to close it automatically.
The following table summarizes the recent large-scale liquidation event in the market:
In the last 24 hours, liquidations in the cryptocurrency derivatives market have amounted to approximately $973 million, with $580 million from long positions and $393 million from short positions.
Interestingly, despite many assets experiencing price increases during this period, a significant number of traders who had bet on upward movement faced losses.
This suggests that many traders may have rushed to open bullish positions only after Bitcoin reached its recent peak. While long positions faced challenges, short positions also experienced noteworthy liquidations.
Among individual cryptocurrencies, Bitcoin led the liquidations with over $270 million tied to its contracts.
Interestingly, Dogecoin (DOGE) recorded more liquidations than Ethereum (ETH), despite Ethereum’s ranking as the second largest cryptocurrency by market cap, with a difference of only about half a million dollars.
The elevated liquidations for DOGE can likely be attributed to its striking price movements, which saw it rise over 21% by the end of the day.