Data shows the cryptocurrency derivatives market has suffered a large amount of liquidations following Bitcoin’s rally to its new all-time high (ATH).
Bitcoin Has Set A New Record Above $75,000 Today
The moment Bitcoin investors have been waiting for these past few months has finally happened, as the number one cryptocurrency has set a brand new price record beyond the $75,000 mark during the past day.
The below chart shows how the asset’s recent trajectory has looked:
The price of the coin appears to have shot up over the last 24 hours | Source: BTCUSDT on TradingView
This latest bullish burst in the coin came as investors were betting big on a win for pro-crypto Donald Trump in the US presidential elections. The results have settled now, and Trump has indeed returned to the White House for his second term.
BTC hasn’t been the only asset that has enjoyed this positive wave, of course, as the altcoins have also displayed rallies of their own. A lot of the alts have, in fact, put together better gains than the 8% jump that Bitcoin and Ethereum have seen in the last 24 hours.
Given all that has been happening in the sector, it’s not a surprise to see that the derivatives side has also been quite lively.
Crypto Derivatives Market Has Just Seen $574 Million In Liquidations
According to data from CoinGlass, a mass liquidation event has occurred in the sector during the past day. The “liquidation” of any open contract occurs when its platform forcibly shuts it down after it amasses losses of a certain degree (the exact value of which can differ between exchanges).
In total, $574 million worth of cryptocurrency positions have undergone this process in the last 24 hours.
Looks like the liquidations from this window have been lopsided towards the shorts | Source: CoinGlass
Out of these, almost $385 million of the liquidations have involved short contracts. This represents 67% of the total, which, while still an obvious majority, isn’t quite as lopsided as during similar bullish events in the past.
More than $189 million in longs still managing to get liquidated through the positive price action suggests that a lot of these positions were opened at the Bitcoin top.
In terms of the contribution from the individual symbols, Bitcoin has unsurprisingly occupied the largest share with nearly $275 million in liquidations.
The breakdown of the latest liquidations by symbol | Source: CoinGlass
What is a surprise, however, is Dogecoin (DOGE) coming in second ahead of Ethereum, despite the large difference between the market caps of the two. This means that the memecoin has been garnering a huge amount of speculative interest recently.
These coins have only witnessed $57 million and $49 million in liquidations, respectively, though, which isn’t much when compared to Bitcoin’s total. Thus, the original digital asset has very much been the main focus of the market.
$574 million in contracts have been flushed so far, but it appears this hasn’t been enough to dissuade the speculators, as the BTC Open Interest has only surged to a new all-time high (ATH).
The trend in the Bitcoin Open Interest over the last few months | Source: CoinGlass
Featured image from Dall-E, CoinGlass.com, chart from TradingView.com
