Crypto Market Still Reeling As Bitcoin’s Break Above $24,000 Triggers Liquidations
February 02 2023 - 8:00AM
NEWSBTC
On Wednesday, the crypto market received favorable news in form of
the FOMC announcement and the price of Bitcoin eventually broke
above $24,000. With the Fed turning dovish after being hawkish all
through 2022, it has been a beacon for the crypto market to rally
and the liquidations have ramped up as the market took advantage of
this. Crypto Market Liquidations Cross $130 Million With bitcoin’s
rally above $24,000, short traders have once again drawn the short
stick and are getting brutalized in the market. As of Thursday
morning, the volume of liquidations over the last 24 hours has
quickly crossed $130 million. Related Reading: Are Nigerians Really
Buying Bitcoin For As High As $34,000? Over 47,000 traders have
seen their positions liquidated with the market rally and as
expected, the vast majority of these have been short traders. Data
from Coinglass shows that 72.96% of all traders affected during
this liquidation event were short traders. Furthermore, almost half
of all liquidations took place on the Binance crypto exchange at
48.34%, while Bybit accounted for 19.37%, and OKX followed closely
behind at 14.96%. Interestingly, the largest single liquidation
took place on the Bybit exchange on the BTCUSD pair worth $1.69
million. Liquidations cross $130 million | Source: Coinglass
Bitcoin leads the pack with over 1,670 BTC liquidated worth $39.67
million. Ethereum saw 20,560 ETH liquidated with $34.31 million, as
the price of ETH rocketed past $1,660. Aptos, Solana, and Optimism
made the top 5 with liquidations of $6.10 million, $4.05 million,
and $2.95 million, respectively. In the last four hours though,
there seems to be a turn in the trend with bitcoin’s drop below
$24,000. While short traders are still suffering the majority of
liquidations (58.14%), long positions are catching up. What Happens
If Bitcoin Keeps Growing? Bitcoin has since retraced after climbing
above $24,000 but the digital asset still maintains its bullish
streak. This means that there is still a long runway for bitcoin
and it could possibly climb back above $24,000 before the trading
day is over. Related Reading: Data Suggests Sharks Were Behind
Litecoin’s 89% Rise To $97, But What About Now? If this happens,
then the liquidations are expected to ramp up quickly. BTC’s
consolidation over the last few days had worked to sow doubt in the
market, and short positions were opened during this time. The Fed’s
decision to only raise interest rates by 25 basis points has
already instilled more trust in investors who are now more willing
to take risks. BTC trending above $23,800 | Source: BTCUSD on
TradingView.com Presently, with BTC ranging above its 200-day
moving average, $25,000 is more likely a point for the digital
asset to end its rally before a major pullback. At the time of this
writing, bitcoin is still changing hands just below $24,000 at
$23,800. Nevertheless, the digital asset is seeing gains of 3.39%
in the last 24 hours, according to data from Coinmarketcap. Follow
Best Owie on Twitter for market insights, updates, and the
occasional funny tweet… Featured image from Bitcoinist, chart from
TradingView.com
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