$202 Million in Long Liquidations Occur in Bitcoin Market
Bitcoin's price declined to approximately $103,000 on May 31 but has since shown signs of recovery. It remains over 6% below its all-time high of $111,814. On-chain data indicates a potential for upward movement.
Mass Long Liquidations Impacting Bitcoin
- $202 million in long positions were liquidated on Binance on May 30, marking the third-largest liquidation in May.
- The largest liquidations this month were $211 million on May 12 and $277 million on May 23.
- These liquidations are attributed to leveraged trading as prices rose sharply from $94,000 to above $111,000.
- Liquidations can lead to increased volatility but may also reset market conditions for more stable price movements.
Current Market Sentiment
- Funding rates for Bitcoin remain low, indicating trader hesitation towards new long positions.
- Analyst Darkfost noted that typically funding rates surge after a new all-time high, which is not currently happening.
- This cautious investor sentiment could support a positive trend for Bitcoin’s price without leading to overheating.
- As of now, Bitcoin is priced at approximately $104,897, with a 0.2% increase over the past 24 hours.
