Over 50,000 Traders Forced to Exit Positions as Bitcoin Price Surges Past $66,000 During Bullish Rally
In a surprising turn of events, the price of bitcoin experienced a substantial surge on Wednesday, increasing by more than $4,200 from its lowest point of the day. This impressive 7.1% growth against the U.S. dollar propelled bitcoin to surpass the $66,000 mark, ultimately peaking at $66,461 per coin on Bitstamp. As a result, the entire cryptocurrency market saw a 6.2% rise, leading to the liquidation of 51,567 traders on various crypto derivatives exchanges throughout the day.
Bitcoin Soars to $66,000, Resulting in $127M Worth of Liquidations in Crypto Derivatives
At 3:45 p.m. Eastern Time (ET) on Wednesday, bitcoin managed to climb 7.1% in relation to the dollar, breaking the $66,000 barrier. Currently, bitcoin’s price sits at $66,300 per unit, with a global trading volume of $34 billion over the past 24 hours. Compared to the lowest price of the day, bitcoin’s value has surged by over $4,200 during the trading sessions. Over the past week, bitcoin has experienced a 5.2% increase against the U.S. dollar.
The sudden uptick in bitcoin’s price on Wednesday followed the release of the consumer price index (CPI) report by the U.S. Labor Department’s Bureau of Labor Statistics. On May 15, bitcoin was primarily traded against USDT, FDUSD, USD, USDC, and KRW, with the South Korean won accounting for 2.36% of bitcoin’s global trades. While the average global price of bitcoin is $66,300, it is noteworthy that it traded at $67,632 on the South Korean exchange Upbit at 3:45 p.m. (ET).
This significant price surge across the entire crypto market led to extensive liquidations, with 51,567 traders being forced to exit their positions. Within the past 24 hours, around $127.98 million worth of derivatives positions were liquidated, including $83.39 million from crypto short positions alone. Out of these short positions, $45.94 million belonged to bitcoin shorts and $17.88 million to ethereum (ETH) shorts. Additionally, $6.27 million worth of PEPE shorts were liquidated throughout the day.
The latest surge in bitcoin’s price, triggered by a positive CPI report, resulted in a wave of liquidations, particularly affecting leveraged positions. The clearance of $127.98 million in derivatives emphasizes the high-risk nature of leveraged crypto trading, where significant price movements can either lead to tremendous fortunes or obliterate investments within moments. The use of leverage, while offering the potential for amplified gains, also exposes traders to substantial risks, as demonstrated by the swift liquidation of numerous positions on Wednesday.
What are your thoughts on bitcoin’s price surge on Wednesday? Feel free to share your opinions and insights on this matter in the comments section below.