Crypto News- In the past 24 hours, a staggering $361 million worth of leveraged trades went down the drain as Bitcoin experienced a rollercoaster ride. Starting strong with a new all-time high of $73,050, it took a nosedive below $70,000 on March 12, leaving traders reeling.
The carnage primarily hit long positions, sucking out $258 million from hopeful investors who bet on Bitcoin’s rise. Short sellers didn’t escape unscathed either, with over $103 million going up in smoke.
Bitcoin Price Swings Lead to 360M Dollars in Liquidations for Long and Short Positions
This massive liquidation marks the biggest purge of long positions since March 5, when Bitcoin stumbled to $60,800 after flirting with its previous all-time high. Thankfully, this time around, volatility wasn’t as brutal, with Bitcoin swinging only 4.85% between its low and high points.
As of now, Bitcoin has stabilized around $71,400, providing a brief respite for traders catching their breath. However, the uptick in volatility hints at an impending correction, fueled by nervous anticipation among traders, especially during US trading hours with the debut of ETFs.
But amidst the uncertainty, there’s a palpable Fear of Missing Out (FOMO) driving the market, suggesting the rally might soldier on.
Adding to the drama, futures open interest spiked by 5% over the weekend, likely bolstered by traders employing tight stops. Bitcoin and Ether emerged as the major casualties, with $106.3 million and $73.3 million in liquidations respectively.
Solana, Dogecoin, and the Bitcoin-based memecoin Ordi (ORDI) also felt the sting, contributing to the cascade of losses. The brunt of the damage was felt on OKX, with $152 million flushed out, closely followed by Binance traders nursing combined losses of $128.4 million.
And let’s not forget the short sellers, who’ve been on the wrong side of the bet, bleeding over $6 billion while Bitcoin soared 130% to $37,800 in the first 11 months of 2023. It’s a cautionary tale of the perils of betting against the crypto tide, a lesson that seems to repeat itself time and again in this wild market.
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