Over the past 24 hours, the cryptocurrency market has experienced significant volatility as Bitcoin officially surpassed the $100,000 mark. This price movement has resulted in massive liquidations totaling nearly $1 billion across the market, leading to a change in trader behavior.
Additionally, data from the Bitcoin derivatives market indicates increased activity. Analysts are now concerned about the potential for even larger waves of liquidations.
Liquidations of long positions are increasing as Bitcoin exceeds $100,000.
According to CoinGlass, around 190,000 traders have been liquidated, with total losses reaching $970 million. Short positions were the most affected, amounting to $836 million in losses. This event marks the largest liquidation of short positions since 2021. CoinGlass also noted that the actual figures may be even higher. While short positions have been liquidated, the market faces a new risk: a sharp increase in long positions.
The 24-hour liquidation map of Bitcoin from CoinGlass shows that if Bitcoin falls below $100,000, total long positions on exchanges could face liquidations amounting to nearly $2 billion. This raises concerns about a potential 'long squeeze' — a phenomenon where mass liquidation of long positions triggers panic selling and accelerates the price drop. The same map also indicates that if Bitcoin falls below $98,000, the total liquidation volume could reach $3.45 billion.
This huge potential for liquidations from long positions signals a shift in trader sentiment. Many are making larger bets and using higher leverage, expecting the price of Bitcoin to continue rising.
Furthermore, CoinGlass data shows that open interest in Bitcoin futures on exchanges has reached a record $67.4 billion. This reflects a growing demand for short-term leveraged trading. Traders are making large bets on the upward trend, increasing risk in the event of a sudden market reversal. Historically, whenever open interest in Bitcoin exceeded $65 billion, a market correction soon followed.
Bitcoin is now attracting attention not only for surpassing $100,000 but also for its growing influence in global finance. At one point, Bitcoin even surpassed Amazon, becoming the fifth-largest asset in the world with a market capitalization of $2.05 trillion. Meanwhile, Standard Chartered predicts that Bitcoin could soon exceed its all-time high and reach $120,000 in the second quarter.#BinanceSquare #Write2Earn #TradeStories #Binance #BTCBackto100K $ETH