Bitcoin Surpasses $67K Mark, Leading to $120M in Crypto Liquidations
Bitcoin has reached a new milestone, surpassing the $67,000 mark on Friday and hitting a peak of $67,482 per unit. This is the highest value the cryptocurrency has seen since late April. As a result, nearly $45 million in leveraged bitcoin short positions have been liquidated in the past day.
The liquidation of these positions is significant as it indicates the elimination of short positions in bitcoin derivatives. Short positions allow investors to amplify their potential gains if the price of bitcoin declines. However, if the price moves in the opposite direction, these positions face the risk of liquidation.
At noon Eastern Time on Friday, Bitcoin reached an intraday high of $67,482 per unit. This surge in price led to the eradication of $120.07 million worth of positions, wiping out 41,829 traders. Of these positions, $80.65 million were short bets, while $39.42 million were long bets speculating on rising crypto prices. In the past 24 hours, approximately $44.89 million in bitcoin shorts were liquidated by 12 p.m. EDT on Friday.
In addition to bitcoin, other cryptocurrencies also experienced liquidations. $24.01 million in Ethereum (ETH) shorts were liquidated, followed by $7.37 million in Solana (SOL) shorts and $2.76 million in Chainlink (LINK) shorts. Both short and long positions in derivatives markets carry significant risk, especially in the volatile crypto market. Bitcoin's price movements can be rapid and unpredictable, as seen this week, leading to the downfall of short traders.
The majority of liquidations in the past 24 hours occurred on Binance, with $19.3 million worth of positions being wiped out. Okex took the second position with $10.33 million in liquidations. Other notable exchanges that experienced significant liquidations included Bybit, Coinex, and Bitmex.
Together, Binance and Okex accounted for $29.63 million of the liquidations, representing 66% of the total liquidation activity in the past day. The recent surge in bitcoin's value has had a significant impact on traders and has highlighted the inherent volatility of the emerging crypto market.
What are your thoughts on the liquidation of bitcoin short positions on Friday? Feel free to share your opinions in the comments section below.