As a seasoned researcher with years of experience navigating the volatile crypto markets, I find myself both captivated and concerned by the recent events unfolding before our eyes. The staggering $1.1 billion in total liquidations within 24 hours is a stark reminder of the inherent risks that come with this space.
In the last 24 hours, the cryptocurrency market saw around 1.1 billion USD in total liquidations across over 156,000 traders, following a drop in Bitcoin‘s price below the $100,000 mark. Approximately 800 million dollars of these liquidations were associated with long traders, and Bitcoin pairs accounted for around 486 million dollars of that amount. The largest single liquidation occurred on the OKX cryptocurrency exchange, involving a BTC/USDT pair worth approximately 18.9 million dollars.
In the last 24 hours, approximately $242 million worth of positions were liquidated on Binance‘s cryptocurrency platform, with around 72% of these instances affecting long traders. Meanwhile, over $133 million in losses (colloquially known as “rekt”) occurred on the Bybit crypto exchange within the same period, with about 78% of these events also impacting long traders.
Major Factors that Contributed to Heavy Cryptocurrency Liquidations Today
In recent times, there’s been a significant rise in the general fascination with the cryptocurrency sector, evident from a record high of Bitcoin searches on Google for several months. However, the Bitcoin futures Open Interest peaked at an all-time high of over $66 billion but subsequently dipped by more than 5%, settling around $61 billion during the mid-European trading session on December 6.
As a crypto investor, I’ve noticed that the intense futures market for cryptocurrencies could benefit from some cooling down to sustain the bullish trend. Interestingly, Bitcoin’s daily Relative Strength Index (RSI) has been showing signs of a bearish divergence lately, while its underlying value has been steadily rising over the past few weeks. This divergence suggests that the price momentum might not be as strong as it seems and could potentially reverse. It’s always crucial to keep an eye on such indicators when investing in cryptocurrencies.
On Thursday, Meitu Inc, a Chinese company involved in various investments and services, revealed that they sold their 948 Bitcoins.
A few large Bitcoin investors started cashing out when the Bitcoin value surpassed $100,000 for the initial time ever.
Instead, While institutional investors were staying cautious, individual traders were jumping onto the Bitcoin bandwagon during its rally, leading to numerous liquidations. Now, however, there’s growing interest among cryptocurrency traders in the altcoin sector, as signs of an “altseason” are becoming more apparent.
Significantly, the combined market value of all cryptocurrencies apart from Bitcoin (TOTAL2) saw a rise of nearly 3%, reaching approximately $1.56 trillion. Meanwhile, Bitcoin’s influence in the market decreased by 1% to roughly 55%.
What’s Next?
As a researcher delving into market trends, I’ve noticed some intriguing patterns based on data from Coinglass. Specifically, the open interest for Bitcoin options shows a substantial difference, with 64% of these options being calls (bets on potential price increases) compared to 36% puts (bets on potential price decreases). This imbalance suggests that a significant number of cryptocurrency investors are optimistic about another bullish BTC rally surpassing $100k in the near future.
On Thursday, U.S. Bitcoin ETF providers experienced a net influx of approximately $766 million, primarily driven by BlackRock’s IBIT with around $770 million. As a result, the combined value of assets held by U.S. spot Bitcoin ETFs now stands at roughly $109 billion.
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2024-12-06 12:15