- Traders using excessive leverage in Bitcoin (BTC) once again feel the pain when volatility wipes out large amounts of value within minutes. The data show that Bitcoin (BTC) dropped to $ 27,700 and recovered seconds later, a shock for some and financial ruin for others.
Traders using excessive leverage in Bitcoin (BTC) once again feel the pain when volatility wipes out large amounts of value within minutes. The data show that Bitcoin (BTC) dropped to $ 27,700 and recovered seconds later, a shock for some and financial ruin for others.
According to on-chain analytics source Glassnode, futures traders with long positions lost a total of $ 190 million on Binance in one hour – the highest in history.
One change, 60 minutes, 190 million dollars
The numbers underscore the true face of Bitcoin, which surrounds all-time highs and becomes 2021’s hottest asset along with Ether (ETH).
For many years, it had almost unbridled success for most of December 2020 and until the new year, seeing little on the road to resistance.
Despite warnings from various analysts that the bull rally could not continue uninterrupted forever, many traders took significant risks and made a big bet on the new highs that were going on. At the event, $ 34,800 marked a decisive peak, and BTC / USD then lost $ 7,000 in 24 hours, including $ 4,000 in less than 60 minutes on Monday.
Glassnode, along with a chart showing Binance liquidations, “$ 190,000,000 (long positions) was liquidated at #Binance within 10 minutes. The greatest value ever, ”commented.
Reward versus risk
As Cointelegraph reported last week, it was the short positions that came for the mass liquidation when Bitcoin broke $ 30,000 for the first time. This episode made selling traders a total of $ 100 million lost on the exchanges.
As the volatility continues, Samson Mow, chief strategy officer at bitcoin tech firm Blockstream, said on Twitter, “Get used to a 5k drop while going to $ 100,000. It comes with the region, ”he said.
Meanwhile, derivatives trading linked to Bitcoin and Ether shows no signs of decline in popularity. CME Group, one of the pioneers of Bitcoin futures, will launch Ether futures in the first quarter of this year.