On July 10, 2024, nearly 2.42 billion USD in short positions in the cryptocurrency market were liquidated, the largest loss in the past 4 years.
At the same time, Bitcoin price skyrocketed to a record 118,000 USD, creating a lively and volatile trading day in the history of the cryptocurrency market.
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Short position liquidations reached 2.42 billion USD in one day – the highest in 4 years.
Bitcoin price reached a record level of 118,000 USD on the same day.
Why was the short position liquidated so strongly on July 10, 2024?
The sudden growth of Bitcoin has put investors with short positions at great risk, leading to a record liquidation. According to data from Coinglass, 2.42 billion USD in short positions had to be closed that day.
Mr. Michael Foster, Market Analysis Director of a financial company, said: “When Bitcoin broke above strong resistance levels, short investors lacking risk management mechanisms were liquidated in bulk.”
The sudden price increase and large-scale liquidation of short positions created significant momentum for the market, while also warning investors about the potential risks of trading with high leverage.
Michael Foster, Market Analysis Director, 07/12/2024
What does the price of Bitcoin rising to 118,000 USD mean for the cryptocurrency market?
Bitcoin's price surpassing the record of nearly 118,000 USD represents a strong recovery, reinforcing Bitcoin's leading position in the entire cryptocurrency sector.
Information from the market report of a leading data company in 2024 shows that this price increase has a positive effect on Altcoins and reinforces confidence for long-term investors.
Impact on investors and the cryptocurrency market
Bitcoin reaching a new ATH allows many investors to reap significant profits, especially long-term holders. At the same time, the event also led to an increasing trend of liquidity and diversification of investment portfolios.
How does this event compare to previous large liquidations?
The liquidation of 2.42 billion USD in short positions recorded on July 10, 2024, is the highest in the past 4 years, surpassing previous records, such as the liquidation of 1.8 billion USD in May 2020.
Short liquidation day (billion USD) Bitcoin price at the time Meaning 07/10/2024 2.42 118,000 USD Highest in 4 years, initiating a strong upward trend 05/12/2020 1.8 9,000 USD Liquidation at a time when the market was preparing for halving 03/02/2021 1.5 57,000 USD Strong price surge after the pandemic
The peak of short position liquidations is a sign of high volatility but also a great opportunity for smart investors to restructure their portfolios.
Linda Green, Cryptocurrency Analyst, 08/01/2024
Frequently asked questions about the liquidation event and record Bitcoin prices
1. Does the liquidation of short positions have any impact on the market?
Liquidations help adjust the market, create upward momentum, but also warn of high risks for leveraged users.
2. Why did the price of Bitcoin rise sharply to 118,000 USD?
The factor of high demand exceeding supply, expectations for a comprehensive recovery, and a series of positive news supporting strong price increases.
3. What should investors do in the case of large liquidations?
Tight risk management, avoid excessive leverage, and diversify the asset portfolio.
4. What trends in cryptocurrencies does this liquidation relate to?
Direct impact on short positions while simultaneously boosting investment demand for Altcoins and Stablecoins.
5. Can we expect the upward trend of Bitcoin prices to continue?
It is necessary to closely monitor on-chain indicators and macroeconomic conditions to assess the likelihood of continuing the upward trend.
Source: https://tintucbitcoin.com/thanh-ly-short-tien-ao-ky-luc/
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