The data shows a large number of long crypto contracts closed as the price of Bitcoin fell below the $66,000 level.
The Crypto Market Faced $267 Million in Debts in the Last Day
According to data from CoinGlass, a large amount of liquidation has recently occurred in the crypto market. A “liquidation” is a dynamic closing that occurs when a derivative market contract accumulates a loss of a certain percentage (as defined by the platform).
The risk of the contract being terminated depends on how badly the asset behaves, and how much the trader has chosen to use. In the crypto market, coins tend to show constant volatility and contracts are frequently used, so it is not uncommon for a large number of liquidations to occur at once.
Over the past day, Bitcoin and other assets have seen sharp price action and once again, sales have piled up in derivatives trading. Below is a table showing the numbers associated with this liquidation event.
Looks like the longs have taken the largest hit | Source: CoinGlass
In total, the crypto market has experienced about 268 million liquidations in the last 24 hours. Of this, $188.5 million of the contracts involved were bullish bets.
Long contracts that are unduly affected by the event naturally move prices down the window. Bitcoin fell below $66,000, while Ethereum headed for $1,900.
In terms of event contribution per token, ETH beat BTC to the top spot this time around, as the heat map below shows.
How the liquidations have looked when broken down by symbol | Source: CoinGlass
Usually, Bitcoin raises the highest number of completions in the sector. Although, while after this period, BTC with contracts amounting to $86 million is still almost equal to ETH’s value of $88 million. Ethereum being ahead of the original cryptocurrency may be down to the fact that its price has seen a large percentage swing in the past day.
In other news, Bitcoin spot-traded funds (ETFs) are looking to end the week with gains, as data from SoSoValue shows.
The spot ETFs have so far been green for the latest week | Source: SoSoValue
Over the past five weeks, Bitcoin spot ETFs have seen consecutive net outflows. However, it may seem that this song may break this week. So far, this week has seen an inflow of nearly $815 million into US funds.
BTC price
Bitcoin fell to $65,600 following its 3% drop during the previous day.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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