Nearly $700 Million Liquidated in Crypto as Bitcoin Hits New All-time High

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As a seasoned researcher with over two decades of experience in financial markets, I must confess that I’ve never witnessed such a tumultuous day as November 11th in the history of crypto trading. The Bitcoin surge to $88,000 was a spectacle that left even the most hardened traders gasping for breath.

On November 11th, the digital currency Bitcoin (BTC) reached a remarkable new peak, soaring to an all-time high of approximately $88,000 since its launch in 2009. This sudden price rise led to a significant series of margin call events, resulting in around $700 million worth of leveraged positions being liquidated across prominent cryptocurrency trading platforms like Binance, OKX, KuCoin, Bybit, and Bitget.

Based on information from CoinGlass, over the last 24 hours, a combined total of 177,103 traders suffered losses amounting to roughly $676.76 million in the crypto derivatives market. It was Bitcoin traders who endured the most significant losses, with approximately $261 million being liquidated during this timeframe.

Bitcoin Short Traders Hit the Hardest

Those who predicted Bitcoin would fall instead of rising, and found themselves off the mark as it soared to $88,000, experienced a significant setback, with estimated losses totaling approximately $212 million.

On the flip side, traders who had held Bitcoin for a long time and anticipated substantial profits found themselves encountering unexpected obstacles when BTC failed to meet their projected returns. This error in judgment led to a liquidation of approximately $48.21 million in assets as the bulls regained control of the market following several months of a continuous decline.

The spread of this liquidation trend reached beyond Bitcoin, influencing other significant cryptocurrencies such as Ethereum ($3,424), Solana ($224.9), Cardano ($0.64), and even popular meme coins like Dogecoin ($0.43). These digital assets experienced varying degrees of volatility within the last 24 hours: Ethereum (8.7%), Solana (7.8%), Cardano (10.5%), and Dogecoin (54.2%). Their respective market caps and 24-hour volumes are as follows: Ethereum ($410.08 B, $70.86 B), Solana ($105.89 B, $13.79 B), Cardano ($23.04 B, $3.35 B), and Dogecoin ($63.18 B, $34.28 B).

According to CoinGlass’s data, about $80 million worth of Ether futures contracts were terminated within a day. Similar to Bitcoin, Ethereum experienced a significant jump on Monday, exceeding its resistance levels by more than 6%. This sudden surge caused many traders to liquidate their positions because their strategies didn’t anticipate such unexpected growth from the asset.

In simpler terms, those betting against Ethereum (short positions) suffered heavy losses totaling approximately $43 million, while individuals who predicted a positive outcome for the asset (long positions) lost around $36 million.

Traders on the Solana platform faced around $22 million in liquidations, while those involved in Cardano’s derivatives market suffered losses amounting to about $7.13 million. Known for its volatility and fervent fanbase, traders on Dogecoin saw approximately $8 million in liquidations, adding to the widespread chaos affecting the cryptocurrency market.

Binance Contributed Lion’s Share of the Liquidations

Over the past period, most liquidations took place on centralized trading platforms as investors known as “bulls” started regaining control over the market following several months of bearish trends. According to CoinGlass, Binance accounted for nearly 40% of these liquidations, with a staggering $268 million being lost, while OKX experienced approximately $169 million in losses within its derivatives sector.

On the Binance platform, a user experienced the largest individual liquidation order to date, resulting in a loss of approximately $15.70 million during a single transaction.

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2024-11-12 12:10