Bitcoin Surges to $66,000, Crypto Derivatives Market Faces $127 Million Liquidation Wave
In an impressive display, the price of bitcoin experienced a significant surge on Wednesday, surpassing its daily low by over $4,200. This remarkable 7.1% increase against the U.S. dollar propelled bitcoin above the $66,000 threshold, ultimately reaching a peak of $66,461 per coin on the Bitstamp exchange. Consequently, the entire cryptocurrency market saw a rise of 6.2%, resulting in the liquidation of 51,567 traders on various crypto derivatives exchanges throughout the day.
Bitcoin's climb to $66,000 occurred at 3:45 p.m. Eastern Time (ET) on Wednesday, marking a 7.1% increase relative to the dollar. At present, bitcoin is valued at $66,300 per unit, with a global trading volume of $34 billion over the past 24 hours. The cryptocurrency's value has surged by more than $4,200 since its lowest price of the day. Moreover, over the past seven days, bitcoin has experienced a 5.2% rise against the U.S. dollar.
Bitcoin's initial surge on Wednesday followed the release of the consumer price index (CPI) report by the U.S. Labor Department's Bureau of Labor Statistics. Bitcoin's primary trading pairs on May 15 included USDT, FDUSD, USD, USDC, and KRW, with the Korean won accounting for 2.36% of global bitcoin trades. While the average global price of bitcoin stands at $66,300, it traded at $67,632 on the South Korean exchange Upbit at 3:45 p.m. (ET).
The significant increase in prices across the entire crypto market led to a considerable number of trader liquidations, with 51,567 traders being wiped out on the same day. Within the past 24 hours, derivatives positions totaling $127.98 million were liquidated, including $83.39 million in crypto short positions. Specifically, $45.94 million of these positions were bitcoin shorts, while $17.88 million consisted of ethereum (ETH) shorts. Additionally, $6.27 million in PEPE shorts were liquidated throughout the day.
This recent surge in bitcoin's price, driven by a favorable CPI report, triggered a wave of liquidations that primarily affected leveraged positions. The liquidation of $127.98 million in derivatives highlights the high stakes involved in leveraged crypto trading, where substantial price movements can either lead to tremendous profits or wipe out investments in an instant. While leverage offers the potential for amplified gains, it also carries significant risks, as demonstrated by the swift liquidation of numerous traders' positions on Wednesday.
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