Crypto Industry Sees $1.1 Billion in Liquidations Amid Bitcoin Price Drop
The crypto industry experienced approximately $1.1 billion in liquidations involving over 156,000 traders within the last 24 hours, following Bitcoin's price decline below $100K. Long traders accounted for more than $800 million of this total, with Bitcoin pairs representing about $486 million. The largest single liquidation occurred on the OKX exchange, involving a BTC/USDT pair worth $18.9 million.
On the Binance exchange, liquidations reached around $242 million, with 72% involving long positions. Bybit recorded over $133 million in liquidations, with 78% also consisting of long trades.
Major Factors Contributing to Liquidations
Overall interest in the cryptocurrency market has risen, evidenced by increased Bitcoin searches on Google. Bitcoin futures Open Interest peaked above $66 billion but subsequently declined more than 5%, settling around $61 billion. This correction was necessary to sustain bullish momentum. Additionally, Bitcoin's daily Relative Strength Index (RSI) showed bearish divergence as its value increased over recent weeks.
Meitu Inc., a Chinese investment holding company, announced it sold 948 Bitcoins. Some Bitcoin whales took profits after prices exceeded $100K for the first time, while retail traders continued to invest heavily, leading to significant liquidations. Attention has shifted to altcoins as signs of an impending altseason appear.
Notably, the TOTAL2 market cap, excluding Bitcoin, rose about 3% to approximately $1.56 trillion, while Bitcoin dominance fell by 1% to around 55% at the time of writing.
Future Outlook
Market data from Coinglass indicates that Bitcoin’s Options open interest consists of 64% calls and 36% puts, suggesting investors expect another bull rally beyond $100K soon. Additionally, the supply of Bitcoin on centralized exchanges has continued to decrease, driven by institutional interest.
On Thursday, US spot Bitcoin ETF issuers saw a net cash inflow of about $766 million, primarily from BlackRock’s IBIT, which contributed around $770 million. Consequently, US spot Bitcoin ETFs now hold total assets valued at approximately $109 billion.