Fintech
Bitcoin Bloodbath Triggers $374M Liquidation Wave: What Does the Future Hold 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 last 24 hours, a total of 132,091 traders were liquidated, with a total of losses of $374.81 million.
Bitcoin’s sharp decline
Bitcoin, the flagship cryptocurrency, faced intense selling pressure, plummeting below $60,000 and hitting a recent low of around $57,110. The market has seen over $99.37 million in liquidations from long positions alone on centralized exchanges, out of a total of $113.75 million liquidated in BTC positions.
However, the largest single order liquidation occurred on Binance, at $18.48 million in ETH/USDT, according to Coinglass’ report.
Ether and other cryptocurrencies
Ether (ETH), the second largest cryptocurrency, they also faced substantial liquidationswith over $97.55 million liquidated, of which $89.77 million was in long positions.
Liquidations occur when a trader’s position is automatically closed due to insufficient funds to maintain it, usually due to market fluctuations that erode the initial margin or collateral.
Derivatives traders remain optimistic
Despite recent market declines, derivatives traders remain optimistic, especially for Ether. QCP Capital analysts noted bullish sentiment in the options market, with a strong focus on Ether calls for September and December expirations.
Additionally, the expected approval of Ethereum spot exchange-traded fund (ETF) Form S-1s could trigger a significant rebound 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 dropping dramatically from $79 million in March to $29 million.