- Around $259 million was held in long positions in the cryptocurrency market, with over $295 million in liquidations occurring across centralized exchanges.
- In the last day, long liquidations of bitcoin totaled about $77 million as the price dropped below $58,000.
In the last day, there has been intense selling pressure on Bitcoin, which has caused the cryptocurrency to drop below the $60,000 support level and to a recent low of about $57,800.
Out of a total of $92 million in liquidated BTC holdings, there were approximately $77 million in long bitcoin liquidations across centralized exchanges in the last day, as per Coinglass statistics. With about $259 million in long bets, the larger cryptocurrency market saw approximately $295 million in liquidations on controlled exchanges.
Significant liquidations also affected Ether, the second-biggest cryptocurrency, with almost $71 million liquidated, of which $62 million was from long holdings.
A trader’s position is automatically liquidated during a liquidation when there aren’t enough money to maintain it; this is usually the result of market swings that reduce the trader’s initial margin or collateral.
According to researchers, futures traders are bracing for price hikes in the upcoming months, especially for ether, despite a recent decline in the cryptocurrency market.
Analysts at QCP Capital said that despite the persistently high tilt in interest towards ether calls with September and December expiries, the options market is remains hopeful.
The elements that can lead prices to reverse the present downward trend were expounded upon in the QCP Capital research released on Thursday. Two scenarios that could trigger a reversal in a subsequent price correction were presented by the analysts. The QCP Capital analysts also noted that there is a significant topside bias in the liquidity clusters on ether and bitcoin, which could lead to short squeezes.
Additionally, they stated that the approval of the spot Ethereum exchange-traded fund (ETF) S-1 form is in the works and that “a hard bounce in ether may result from an approval.” The research also stated that ether may see a bigger recovery given the current sell pressure on bitcoin, which was fueled by events like Mt. Gox and indications of miner surrenders.
The QCP Capital market analysis emphasized that there are indications of surrender among bitcoin miners. This has historically been linked to a price bottom; the most recent equivalent hash rate drawdown was in 2022, when the price of bitcoin reached $17,000.
A research published on Wednesday by CryptoQuant claims that there are a number of indications of miner capitulation, which in the past has signaled a price bottom. According to the data provider’s measures, miners have been grossly underpaid for the majority of the time since April, the research stated. According to CryptoQuant, the aggregate daily earnings for miners have dropped from $79 million on March 6 to $29 million at this time.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
