On Thursday, the price of bitcoin (BTC) reached its peak at $66,455 per coin around 7 a.m. EDT but later fell to approximately $64,516 by noon. These rapid and unpredictable movements in the market led to a total of $118.82 million in liquidations across the cryptocurrency economy, with long positions accounting for $61 million of that amount.
Bitcoin experienced a rapid rise and fall, triggering significant liquidations in the crypto economy. Although it briefly reclaimed the $66,000 level on June 20, it was unable to maintain its position due to selling pressure. As of 2 p.m. on Thursday, the price of BTC fluctuated between $64,850 and $65,150. It is worth noting that when BTC moves, it often has an impact on the broader crypto market, causing other cryptocurrencies to rise and fall in tandem. Today was no exception, as several altcoins experienced similar price swings.
After a strong surge today, with BTC surpassing the $66K per unit mark, it lost momentum and reached a low of $64,516. As a result of this market activity, a total of $118.82 million in derivatives were liquidated across the ecosystem. Bitcoin alone saw $33.10 million in short positions being liquidated, while ethereum (ETH) experienced price changes that led to $22.21 million in long positions being wiped out. Other cryptocurrencies also faced liquidations, with Solana (SOL) experiencing $6.91 million in long liquidations and $4.23 million in pepe (PEPE) longs being liquidated.
In summary, long positions faced $65.13 million in liquidations on Thursday, while short positions saw $53.6 million being erased. Within the past day, a total of 48,553 traders were liquidated. The Long to Short Ratio indicates a predominantly bearish sentiment among traders, although there is a slightly higher accumulation of long positions following the recent price adjustments.
The ratio between long and short positions is almost balanced, with a slight advantage for longs. On Binance, traders predominantly hold long positions, while Okx traders are mostly long on BTC. Conversely, the majority of Deribit traders are short on BTC as of 2 p.m. EDT on Thursday. Despite the recent liquidations, ongoing long activity, and bets against BTC's rise by hedge funds and traders leveraging crypto derivatives exchanges, a 10% price rebound could potentially eliminate billions in short positions.
What are your thoughts on the volatile crypto market witnessed on Thursday? Feel free to share your opinions and thoughts on this subject in the comments section below.