Key Takeaways
- In the last day, there have been liquidations totaling over $500 million, with short bets in Bitcoin being the most severely affected.
- In a single day, the combined liquidations of major exchanges Binance, OKX, and Bybit totaled more than $92 million.
- Increased speculative interest was reflected in the 13% increase in total futures open interest for Bitcoin.
The cryptocurrency market has seen a big wave of liquidations due to a rapid increase in the price of Bitcoin; in the previous day, $560 million worth of positions had been wiped out.
Bitcoin’s open interest increased by 13% as a result of this price spike, indicating that market speculation is intensifying.
According to CoinGlass statistics, cryptocurrency liquidations soared to $560 million in a single day, with Bitcoin positions making up nearly half of the total at $274.56 million.
Amid a price rally, short liquidations of bitcoin reached a record high.
Major cryptocurrencies, including Ethereum, Dogecoin, and Solana, witnessed massive liquidations of $49.43 million, $56.98 million, and $28.70 million, respectively, as a result of the cascading effect that reverberated throughout the altcoin market.
The liquidation rise comes after the price of Bitcoin has been rising gradually over the past few weeks. In the early hours of November 6, when the first results of the U.S. election indicated that Donald Trump was likely to win, Bitcoin hit a new all-time high of $75.36K.
The largest volume of liquidations occurred on well-known cryptocurrency platforms like Binance, which saw $39.53M, closely followed by OKX and Bybit, which saw $31.22M and $22.06, respectively. Overleveraged short positions that wagered against Bitcoin’s rising trajectory were the main targets of these forced liquidations.
A 13% increase in Bitcoin’s open interest in futures contracts further demonstrates the market’s growing speculative activity.
As speculative traders try to profit from Bitcoin’s erratic price swings in order to make huge gains, this indicator shows increased trading activity. However, the market is now more susceptible to abrupt price changes and cascade liquidations as a result of the increased usage of leverage.
The jump in liquidations coincides with the Crypto Fear & Greed Index reaching 76, a level that denotes “Extreme Greed,” which frequently indicates that market sentiment is bullish just before a correction is about to occur.
Market players foresee a sudden surge that could push Bitcoin’s price above $100,000 as the U.S. election draws to a conclusion. Donald Trump, a pro-crypto candidate, is predicted to win 270 electoral votes and become the next president of the United States.
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