8 hour ago

0 0

Crypto Liquidations Surge with $640 Million Long Positions Wiped Out

The recent surge in crypto liquidations highlights increased leverage usage among traders. Key points include:

Average daily liquidations have risen to $68 million long and $45 million short, up from previous cycles.
On October 10, Bitcoin saw over $640 million per hour in long positions liquidated as its price dropped from $121,000 to $102,000.
Bitcoin's open interest plunged 22% within 12 hours, marking a significant deleveraging event.

Futures and Spot Trading Activity

Futures markets reached a record $68 billion in open interest with daily turnover exceeding $69 billion.
Perpetual contracts make up over 90% of futures activity, concentrating risk.
Spot trading volumes for Bitcoin have doubled to a daily range of $8 billion to $22 billion.
During the October 10 crash, hourly spot volume peaked at $7.3 billion.

Market Dynamics

Monthly inflows into Bitcoin ranged from $40 billion to $190 billion, raising its realized market cap to a record $1.1 trillion.
Bitcoin’s share of the overall crypto market cap increased from 38% in late 2022 to 58%.
The Bitcoin network processed nearly $7 trillion in transfers over the past 90 days, surpassing major card networks.

Current Price Action

Bitcoin is currently trading at $93,165, reflecting a 6.5% increase daily and nearly 7% weekly.