Data shows the cryptocurrency derivatives market has suffered a high amount of liquidations as Bitcoin and other assets have rallied.
Bitcoin Is Close To Revisiting The $100,000 Mark
After a pullback under $94,000 earlier in the week, Bitcoin has seen a rejuvenation of bullish momentum during the last couple of days as its price has recovered to levels beyond $99,000.
Below is a chart that shows how the asset’s recent trajectory has looked.
The price of the coin appears to have shot up over the past two days | Source: BTCUSDT on TradingView
This rally marks the first time since February that Bitcoin has returned to these levels. If demand keeps up, it’s possible that the cryptocurrency would soon be challenging the $100,000 mark.
The number one digital asset hasn’t been alone in this rally in the sector. In fact, many of the altcoins have produced better returns than BTC’s 2.5% jump during the last 24 hours.
An asset that particularly stands out is Ethereum, which has managed to rally more than 7% inside this window.
The trend in the ETH price during the last five days | Source: ETHUSDT on TradingView
As is visible in the graph, Ethereum has broken above $1,950 with this surge. The coin has generally been performing worse than Bitcoin for a while now, so this breakout reflects a deviation from the pattern.
As a whole, the cryptocurrency sector has witnessed notable volatility in the past day. Thus, it may be of no surprise that the derivatives side of the market has seen a shakeup.
Crypto Derivatives Has Seen Large Liquidations Over The Last 24 Hours
According to data from CoinGlass, a mass amount of cryptocurrency liquidations have occurred on the derivatives exchanges. “Liquidation” here naturally refers to the forceful closure that any open contract undergoes after it has amassed losses of a certain degree, as specified by the platform.
Here is a table breaking down the numbers related to the latest liquidations in the market:
Looks like the shorts have been disproportionately affected by by the volatility | Source: CoinGlass
As displayed above, the derivatives sector has seen a total of $377 million in liquidations during the last 24 hours. Out of these, over $290 million of the liquidations have affected the short contract holders alone.
In percentage terms, this makes up for more than 77% of the total. The liquidation flush being this short-heavy comes down to the fact that assets across the market have gone up in this period.
Bitcoin has interestingly seen more liquidations ($130 million) than Ethereum ($90 million), despite the fact that the latter has seen a larger price move inside this window.
The breakdown of the latest liquidations by symbol | Source: CoinGlass
This could perhaps be an indication that speculative interest around ETH has simply not been that high recently, at least when compared to BTC.
