Bitrabo Editorial
Recent data indicates that the cryptocurrency derivatives market has experienced significant liquidations as Bitcoin’s price has surged to $66,000.
Bitcoin Price Climbs to $66,000
Bitcoin investors have reason to celebrate as the cryptocurrency’s value has surged sharply, reaching the $66,000 mark for the first time since late September.
The chart below illustrates the recent price movements of Bitcoin.
This increase of 6% in a 24-hour period brings Bitcoin closer to surpassing its September peak, which would mark its highest level since July.
As is often the case, Bitcoin’s rally has positively influenced other cryptocurrencies, with Ethereum (ETH) and Solana (SOL) showing even greater growth at 8% and 7%, respectively.
Given the recent volatility, it’s no surprise that the derivatives market has faced significant disruptions.
$233 Million in Liquidations in Crypto Derivatives
According to CoinGlass, the past 24 hours have seen a substantial amount of liquidations in the cryptocurrency derivatives market. A liquidation occurs when a contract is forcefully closed by the trading platform after incurring substantial losses.
The following table provides the latest figures on this mass liquidation event:
As shown, approximately $233 million in cryptocurrency derivatives contracts were liquidated during this period, predominantly affecting short contracts. Investors betting against the market faced losses totaling $198 million, nearly 85% of the total liquidations.
In individual terms, Bitcoin led the pack with nearly double the liquidations compared to Ethereum. However, Bitcoin’s share of the total liquidations was only 39%, indicating that altcoins have also been actively traded amidst this speculation.
Among other cryptocurrencies, Solana faced the highest liquidations at approximately $11 million, followed by SUI and NEIRO with liquidations of $7 million and $5 million, respectively.
Today’s extensive liquidation event is often referred to as a squeeze, specifically a short squeeze, given the predominance of short liquidations among the total.
During a squeeze, the resulting liquidations can further amplify the price movement, creating a cycle of volatility that leads to additional liquidations.