As a seasoned crypto investor with a knack for navigating the volatile market, I’ve seen my fair share of bull runs and bear markets. The latest rally of Bitcoin above $75,000 is undeniably exhilarating, but it’s also a stark reminder of the risks inherent in this space.
It appears that the data indicates significant liquidation events in the cryptocurrency derivative market, triggered by Bitcoin reaching a fresh record peak.
Bitcoin Has Set A New Record Above $75,000 Today
At long last, the eagerly anticipated milestone by Bitcoin investors over the previous several months has been reached, with the leading digital currency exceeding $75,000 in price for the first time ever within the past 24 hours.
The below chart shows how the asset’s recent trajectory has looked:
The recent surge in the value of the coin can be attributed to investors placing significant bets on the re-election of President Trump, who is known to support cryptocurrency. Now that the election results are finalized, Trump has indeed been inaugurated for a second term.
As a crypto investor, I must admit, it’s not just Bitcoin that’s been riding the positive wave lately. The altcoins too have shown impressive rallies of their own. Interestingly enough, many of these alternative coins have actually outperformed the 8% surge seen by both Bitcoin and Ethereum in the past day.
In light of recent events, it’s not unexpected that the derivatives market has been quite active as well.
Crypto Derivatives Market Has Just Seen $574 Million In Liquidations
Yesterday, I experienced a mass liquidation event in the crypto sector, as per data from CoinGlass. This means that any open contracts I had were forcibly closed by their respective platforms due to significant losses they’d accumulated. The threshold for this liquidation can vary between different exchanges.
Over the past day, a total value of approximately $574 million in cryptocurrency holdings has been liquidated or closed.
Approximately 67%, or around $385 million, of these liquidations stemmed from short positions. Although this is a clear majority, it’s not as skewed as we’ve seen during previous bullish market periods.
Over $189 million worth of long positions are being forced to close due to favorable market conditions, implying that many of these trades may have been initiated near the peak of Bitcoin’s price.
Without a surprise, Bitcoin holds the biggest portion when it comes to individual symbol contributions, accounting for almost $275 million in liquidations.
It’s quite unexpected that Dogecoin (DOGE) has taken the second spot over Ethereum, given their significant disparity in market capitalization. This suggests that Dogecoin has been attracting a massive surge of speculative attention lately.
These coins have seen relatively small amounts of liquidation – $57 million and $49 million each – when put next to Bitcoin’s total liquidation figure. Consequently, it is clear that Bitcoin remains the primary focal point in this market.
So far, contracts worth approximately $574 million have been liquidated, yet it seems that this hasn’t deterred the investors, as the Bitcoin Open Interest has skyrocketed to a record-breaking peak (new all-time high).
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2024-11-07 19:45