Bitcoin Plunge Costs Traders $345 Million
Date: 2024-01-14 Author: Dima Zakharov Categories: BLOCKCHAIN
1. Market-Wide Liquidations:
Over the past 24 hours, the cryptocurrency market witnessed a significant liquidation event totaling $345 million. A majority of these forced closures were linked to Bitcoin (BTC) and Ethereum (ETH) positions. Friday's drop in Bitcoin's price below the $42,000 mark was the main catalyst behind this massive liquidation. More than 100,000 positions were liquidated, wiping out much of the asset's recent month-long success.
2. Major Exchanges Affected:
More than 90% of these liquidations occurred on popular exchanges like OKX, Bybit, Huobi, and Binance. Bybit, in particular, executed the largest order, closing a long BTCUSDT position worth $4.6 million.
3. Bitcoin's Price Movement:
Bitcoin commenced the day at $46,300 but faced significant volatility following the opening of the stock market at 9:30 AM Eastern Time. This volatility led to a substantial correction. Just like Thursday, the cumulative trading volume of ETFs exceeded $1 billion on the first trading day, attracting around $700 million in investments. However, Grayscale's Bitcoin ETF saw an outflow of $95 million. Bloomberg analyst Eric Balchunas noted that more funds were withdrawn from it compared to the previous day.
4. Current Bitcoin Price:
At the time of writing, the price of the largest cryptocurrency had returned to $43,000. According to Coinglass data, traders in the last few hours have been opening more short positions than long ones, signaling uncertainty among market participants regarding Bitcoin's future price growth.
