Bitcoin Volatility Induces $700 Million Carnage In Crypto Futures
February 29 2024 - 7:00PM
NEWSBTC
Data shows the cryptocurrency futures market has seen liquidations
amounting to $700 million in the past day as Bitcoin has gone
through its volatility. Bitcoin Has Seen Intense Price Action In
Past 24 Hours The past day has been a bit of a rollercoaster for
Bitcoin, with the asset registering sharp price action in both
directions but ultimately going up as the bulls win out. Related
Reading: Bitcoin MVRV Hits Levels That Led To Parabolic Bull Run In
2020 The chart below shows what the price action for the
cryptocurrency has looked like recently. The price of the asset
seems to have enjoyed sharp bullish momentum recently | Source:
BTCUSD on TradingView From the graph, it’s visible that Bitcoin
initially witnessed some sharp bullish momentum, in which the coin
not only broke above the $60,000 level, but went up to touch the
$64,000 mark. This high, which is the peak for the year so far,
only lasted briefly, however, as BTC crashed down spectacularly to
under the $59,000 mark. The asset has since recovered to higher
levels, now floating around $62,700. The rest of the cryptocurrency
sector has also gone through its volatility, with prices
fluctuating across the coins. As is usually the case with such
sharp price action, the futures market has suffered many
liquidations. Crypto Futures Market Has Gone Through A Squeeze In
The Past Day According to data from CoinGlass, the cryptocurrency
futures market has witnessed the liquidation of contracts worth
more than $700 million in the last 24 hours. The table below
displays the relevant information about the liquidations. A massive
amount of liquidations appear to have occurred in the past day |
Source: CoinGlass It would appear that only $131 million of the
liquidations came within twelve hours, suggesting that most of the
flush was situated inside the preceding half-day period. This makes
sense, as Bitcoin was most volatile inside this window. It also
seems that the long-to-short ratio in this liquidation event has
been quite balanced, even though the price has increased in the
past day. This would suggest that some aggressive longing occurred
as Bitcoin approached $64,000, and the subsequent pullback wiped
these top buyers. The table below shows how the distribution has
looked for the various symbols. Looks like BTC has topped the
charts once more | Source: CoinGlass As is generally the case,
Bitcoin futures contracts have again been responsible for the
largest portion of the total market liquidations, contributing
around $270 million. Related Reading: TRON Hits 95 Million
Addresses Milestone, Will This Help Price? What’s different this
time, however, is that this share, although the largest, isn’t even
half the total liquidations. This could come down to the fact that
speculators may now be playing around with altcoin positions after
gaining confidence from the BTC price surge. Dogecoin, the best
performer among the top coins with its 34% jump, has occupied the
largest share among the alts, with almost $51 million in
liquidations. Featured image from André François McKenzie on
Unsplash.com, CoinGlass.com, chart from TradingView.com
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