In the past 24 hours, the Bitcoin market has experienced a tumultuous ride, reaching a new all-time high of $73,050 before slipping below the $70,000 mark again on March 12. This rollercoaster has resulted in over $361 million in leveraged trades being wiped out, showcasing the high-stakes nature of cryptocurrency trading.
A Surge in Liquidations
The majority of the liquidations occurred among long position holders, who anticipated a continued rise in Bitcoin’s price, resulting in $258 million in losses. Conversely, short sellers, who bet on a price decline, suffered over $103 million in liquidations. This event marks the largest long position liquidation since March 5, following Bitcoin’s drop to $60,800 after reaching a previous all-time high of around $69,000.
Despite the volatility, the price swing between the low of $69,365 and the high of $72,733 on March 12 was relatively moderate, with Bitcoin only fluctuating by 4.85%, as per CoinGecko data. As of the latest update, Bitcoin has stabilized around $71,400.
Market Sentiments and Predictions
10x Research has linked the increased market volatility to a mix of trader expectations for a price correction and a fear of missing out (FOMO) on potential gains. The anticipation of a correction is partly because Bitcoin has not shown significant momentum during U.S. trading hours, coinciding with the trading of ETFs. However, the prevailing FOMO sentiment could signal the possibility of continued price rallies.
Additionally, futures open interest saw a 5% increase over the weekend, indicating that traders might be positioning themselves with tight stop losses, preparing for any outcome.
Widespread Impact Across Cryptocurrencies
Bitcoin and Ether have led the charge in terms of liquidation volumes, with $106.3 million and $73.3 million respectively. Other notable cryptocurrencies, including Solana, Dogecoin, and the Bitcoin-based meme coin Ordi (ORDI), have also experienced significant liquidations.
Crypto exchanges OKX and Binance were the most affected platforms, with total liquidations of $152 million and $128.4 million, respectively. This volatility underscores the risks involved in leveraged trading and betting against the market trends.
As Bitcoin continues its unpredictable journey, traders remain on edge, balancing between caution and the lure of potential profits. This episode serves as a reminder of the volatile nature of cryptocurrency markets and the substantial impacts of rapid price movements on traders worldwide.
