Data shows the Bitcoin rally above the $28,400 level has triggered $110 million in liquidations across the cryptocurrency futures market.
Bitcoin Rally Leads To Mass Liquidation Event In Futures Market
During the past day or so, Bitcoin has rapidly increased, as its price has gone from the $27,000 mark to above the $28,000 level. This is the first time in about a month and a half that the cryptocurrency has breached this level.
The below chart shows how the asset’s value has changed over the past few days.
The graph shows that earlier in the day, BTC had managed to go as high as $28,500. The coin has since seen a pullback, but it has managed to stay above $28,000.
As is usually the case, the rest of the top assets in the sector have also followed in the footsteps of the original cryptocurrency and have observed rallies of their own.
Generally, whenever the market goes through volatility as sharp as today’s, chaos follows in the futures sector. And indeed, as data from CoinGlass would confirm, there have been many liquidations in the past day.
As the above table shows, the cryptocurrency futures market has registered liquidations of around $134 million in the last 24 hours. As most of the price action in this period has been towards the upside, it’s unsurprising that most of this flush (almost $93 million) involved the short contract holders.
Only one-third of these liquidations occurred within the past twelve hours, another fact that’s not unexpected as most of the volatility was situated within the preceding twelve-hour period.
In terms of the individual contributions to the liquidations from the different symbols, this is how the distribution looks like for the past day:
Naturally, Bitcoin was responsible for the highest share of liquidations, with around $56 million in contracts being flushed, while Ethereum was second with about $36 million.
Solana and Chainlink saw the largest share among the rest of the sector, although at about $5 and $3 million, respectively, their liquidations pale compared to the top two assets.
SOL and LINK’s extraordinary share may be down to the fact that their recent sharp rallies would have put more focus on them, leading to more positions being opened on the futures market.
Mass liquidation events like today’s (popularly called “squeezes“) aren’t a particularly uncommon sight in the cryptocurrency sector due to the nature of the market.
Most of the coins can display quite the volatility, and an absurd amount of leverage can be easily accessible on most platforms, making the futures market a dangerous place to navigate for the uninformed trader.
