Bitcoin fell sharply today during its ongoing rally. During this short-term retreat, BTC dropped to $ 27,700 and recovered seconds later.
It would not be wrong to say that this move was a shock for some and a financial ruin for others. According to on-chain analytics resource Glassnode, long-position futures traders lost a total of $ 190 million on Binance in a single hour, the highest level ever seen.
wBitcoin has really come a long way lately. We can say that a new record has come. In addition, despite warnings from various analysts that the bull run could not continue uninterrupted forever, many traders took significant risks and placed a big bet by opening bullish positions. In the whole process, Bitcoin reached a decisive peak at $ 34,800 and then lost $ 7,000 in 24 hours. This includes the $ 4,000 lost on Monday in less than 60 minutes.
What happened in the end caused a great loss. Glassnode said, “$ 190,000,000 (in long positions) was liquidated on Binance within 10 minutes, with a chart showing Binance liquidations. The greatest value ever, ”he commented. Liquidation occurs when traders borrow money from stock exchanges in order to transact with more than their main capital. Positions are liquidated when the price goes against transactions against a level close to the value of their account (or approaching a predetermined amount).
Last week, when Bitcoin first surpassed $ 30,000, there were short positions for mass liquidation. This caused short-position traders to lose a total of $ 100 million in stock exchanges. Samson Mow, CSO of bitcoin tech firm Blockstream, is about the decline as the volatility continues: “Get used to a 5,000 decline as you go to $ 100,000. It comes with the region. ” used his expressions
Finally, the trading of derivatives based on Bitcoin and Ether shows no signs of decline in popularity. CME Group, one of the pioneers of Bitcoin futures, will launch Ethereum futures in Q1 of this year.