[ad_1]
In the past 24 hours, Bitcoin (BTC) witnessed strong fluctuations, shaking the Cryptocurrency market. A flash sale triggered more than $1 billion in liquidations, marking one of the largest sell-offs since FTX’s collapse in 2022.
Data from Coinglass shows that nearly $900 million in Bitcoin positions were liquidated when its price dropped suddenly from $100,000 to $90,000 before recovering to $97,000.
Bitcoin Recorded Largest Liquidation Event in Years
This dramatic liquidation impacted over 156K traders globally, with $816.819 million in buy orders and $279.631 million in sell orders blown away. According to Coinglass, the largest liquidation, worth nearly $19 million, occurred on the OKX exchange.
Analysts are drawing parallels with the FTX crisis. McKenna, a prominent voice in the Cryptocurrency community, said that this is the largest liquidation event since FTX became insolvent. Many other community members also support this view.
“Spot buyers are stepping in, absorbing the liquidation,” McKenna noted.
Adding to the chaos, Web3 data analytics tool Lookonchain emphasize that Mt. Gox transferred 3,620 BTC worth $352.69 million to two new wallets. The transaction came just hours after the defunct exchange transferred $2.43 billion in Bitcoin to unknown wallets after the Bitcoin price surpassed the $100,000 mark.
Speculation about whether the US government may have released Bitcoin during this time period adds to market uncertainty.
“Has the US government pushed the button to sell the BTC they sent to Coinbase?” one user sarcastically.
Despite these transactions, several factors prompted the large liquidation. TinTucBitcoin identifies profit-taking, large sell orders at key milestones, and highly leveraged positions as the main contributors. Many traders rely on borrowed assets to bet on Bitcoin’s continued growth, leaving them vulnerable to price drops.
Financial analyst Jacob King from WhaleWire criticized highly leveraged retail investors for opening long positions at historic highs.
“That’s what happens when retail investors get FOMO and open highly leveraged long positions at historic highs, while whales sell their assets,” King said. write.
‘Whales’ Benefit From Bitcoin Price Drop
Despite the chaos, some major investors find opportunities. Blockchain analytics firm Lookonchain revealed that a ‘whale’ bought 600 BTC, worth $58.85 million, during the sharp drop. This brought the total amount of BTC they accumulated in two weeks to 1,300 BTC worth $127 million. This opportunistic buying demonstrates Bitcoin’s appeal even in turbulent circumstances.
“After BTC dropped from $100,000, a ‘whale’ grabbed the opportunity and bought 600 BTC worth $58.85 million! Over the past 2 weeks, this ‘whale’ has accumulated a total of 1,300 BTC worth $127 million,” Lookonchain report.
Despite the liquidation, some analysts see the event as a necessary correction in Bitcoin’s bull market, potentially marking a short-term bottom. Others argue that the long-term fundamentals remain intact, evidenced by renewed whale activity and steady accumulation.
The overall Cryptocurrency market has mirrored Bitcoin’s volatility, with Ethereum and other major coins also experiencing increased liquidations. As traders digest these developments, attention turns to the possibility of Bitcoin reclaiming key support levels around $97,000 and maintaining its historic upward momentum.
According to TinTucBitcoin data, Bitcoin is trading for $98,404 at the time of this writing, down 4% since Friday’s open.
General Bitcoin News
[ad_2]
