Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
In a surprising turn of events, the crypto market’s futures experienced a surge, resulting in the liquidation of approximately $155 million in short positions within just 24 hours, driven by an unexpected price increase during U.S. trading hours.
In the last 24 hours, those speculating against a rise in bitcoin (BTC) faced losses exceeding $100 million, fueled by mounting anticipation of a U.S. approval for a bitcoin spot ETF. BTC experienced a remarkable 9% spike on Monday, briefly surpassing $47,000 for the first instance since March 2022. Notably, OKX traders bore the brunt with losses amounting to $84 million, while Binance traders followed closely behind with $71 million in losses.
Over the last day, there was an 8% surge in open interest, indicating that traders have increased their positions following the recent liquidation. This uptick suggests a prevailing belief among traders that the market’s volatility will persist.
Liquidation occurs when an exchange forcibly terminates a trader’s leveraged position due to insufficient initial margin, resulting in either partial or complete loss of the trader’s funds. Such events occur when a trader cannot maintain the necessary funds to sustain their leveraged position.
Significant liquidations often act as indicators, potentially marking the beginning or end of a pronounced price shift, enabling traders to adjust their strategies accordingly.
This information is valuable to traders as it signals a reduction in leverage within popular futures contracts, hinting at a short-term decrease in price volatility.
On Monday, the market landscape shifted as firms like BlackRock (BLK) and Grayscale submitted their fee structures to the U.S. Securities and Exchange Commission (SEC), edging closer to the potential launch of the first U.S.-based bitcoin ETF.
With thirteen ETF proposals pending SEC’s green light, competition for investors appears to be intensifying. Some providers are even waiving fees for the initial six months or for assets under management (AUM) exceeding $5 billion.
Learn from market wizards: Books to take your trading to the next level
