Over $600 Million in Crypto Derivatives Liquidated Amid Bitcoin Volatility
Over $600 million in crypto derivatives positions were liquidated since late Sunday following a significant Bitcoin price movement. Bitcoin surged past $106,000 before retracting to around $103,000.
- The price increase commenced at 21:00 UTC, with Bitcoin rising over $2,500 in under an hour.
- This volatility was attributed to thin weekend liquidity and possible algorithmic trading triggered by technical levels.
- A short squeeze occurred, forcing traders who bet against the price to cover losses, driving prices higher.
- Liquidations included over $460 million in long positions and $220 million in short positions across major cryptocurrencies like ETH, SOL, and DOGE.
- SOL, DOGE, and XRP saw declines of over 4% in the last 24 hours, with the broader CoinDesk index down more than 2%.
- This volatility coincided with macroeconomic uncertainty, including a U.S. credit rating downgrade by Moody’s and rising inflation fears.
- While institutional inflows into crypto have increased, traders are cautious about current price levels.
- Bitcoin has remained flat over the week, struggling to hold above $106,000, indicating potential near-term resistance.
- Traders expect continued market volatility amid concerns over U.S. fiscal policies and spending bills.
