BTC Price Experiences 2% Drop, Causing Liquidation of More Than $34 Million in Bitcoin Long Positions in Derivatives Market Turmoil
In a surprising turn of events on May 9, 2024, the value of bitcoin faced a decline, reaching an intraday low of $60,634 at around 7 a.m. EDT. As a result, a significant amount of bitcoin long positions, totaling approximately $34.79 million, was liquidated across various derivatives markets.
As Bitcoin’s Value Declines, Significant Liquidations Follow Suit
Bitcoin is encountering challenges today, with its price dropping 1.9% over the past 24 hours. However, despite this downturn, BTC has seen a 4.8% increase over the course of the week. Nonetheless, statistics indicate a decline of 12.4% during the past month. As of May 9, BTC’s dominance stands at roughly 53% of the $2.27 trillion cryptocurrency market.
Currently, the market valuation of bitcoin hovers around $1.2 trillion, with a 24-hour trade volume of approximately $24 billion. On Thursday, the top trading pair for BTC is FDUSD, accounting for 44% of BTC trades, while USDT commands 33% of the market share. Following these stablecoins, USD, USDC, and KRW rank as the most traded pairs with BTC over the past day.
According to Coinglass.com metrics, the decline in bitcoin’s value has led to significant liquidations of long positions across various derivatives crypto exchanges. Within 24 hours, $34.79 million worth of BTC longs were liquidated. On the flip side, during the last four hours, $7.85 million in BTC shorts were wiped out. Across the entire cryptocurrency market, a total of $134.34 million in both short and long positions were liquidated throughout the day.
The liquidation figures from today highlight the volatility of leveraged bitcoin trading and underline the risks and rewards associated with crypto derivatives markets. Moving forward, stakeholders will closely monitor bitcoin’s performance as it strives to stabilize and regain its position in the ever-evolving financial landscape. Meanwhile, the recent downturn has resulted in the liquidation of 61,321 traders involved in crypto derivatives.
What is your assessment of the crypto liquidations in the past 24 hours? Feel free to share your thoughts and opinions on this matter in the comments section below.