Bitcoin Price Volatility Wipes Out $360M From Traders

Bitcoin price hit an all-time high of $73,050 before dropping below $70,000, leading to over $360 million in leveraged trade liquidations.

The previous twenty-four hours have seen the liquidation of leveraged trades totaling more than three hundred and sixty million dollars. This comes at a time when Bitcoin price reached a new all-time high of $73,050 before sliding back down below $70,000 on March 12.

According to statistics from the cryptocurrency trading and information platform Coinglass, Bitcoin price movement primarily resulted in the liquidation of long positions, which are those who were wagering that the price would climb.

Long holdings were wiped with a total of $258 million, while short sellers were eliminated with a little over $103 million.Since the 5th of March, when Bitcoin price dropped below $60,800 after reaching its previous all-time high of almost $69,000, this is the largest long flush-out that has occurred since then.

However, the price of Bitcoin only fluctuated by 4.85% between its low of $69,365 on March 12 and its high of $72,733, as reported by CoinGecko. This indicates that the volatility was not as extreme as it had been in the past. Since that time, Bitcoin price has remained stable at $71,400 at the time of publication.

According to a spokeswoman for 10x Research the increase in volatility is most likely the result of traders anticipating a price correction taking place. The representative continued by saying, “At the same time, there is a significant amount of fear of missing out (FOMO) going on,” which may indicate that the rally will continue.

Additionally, 10x Research saw that futures open interest climbed by 5% throughout the course of the weekend, which occurred on March 9 and 10. The company believes that this spike was caused by the use of tight stops. In related news, short sellers of bitcoin have lost $161 million as the cryptocurrency surprises with an 11% rally.

“Traders are becoming more nervous that we could see a price correction as Bitcoin has failed to rally during [United States] trading hours when the ETFs start trading.”

Trades in bitcoin and Ether accounted for the most amount of liquidations over the course of the previous twenty-four hours, with a total of $106.3 million and $73.3 million, respectively.

There were also substantial liquidations of the cryptocurrency known as Solana Dogecoin and the memecoin known as Ordi (ORDI), which is based on Bitcoin. The cryptocurrency exchange OKX experienced the highest number of short and long liquidations, which amounted to a total of $152 million.

On the other hand, traders on Binance realized a collective loss of $128.4 million. Over the first eleven months of 2023, short sellers lost more than $6 billion trying to gamble against publicly traded cryptocurrency enterprises. This occurred at the same time that Bitcoin price had a 130% increase to $37,800 during the same time period, as reported by the research firm S3 Partners.