Yesterday, the price of Bitcoin rebounded significantly, breaking through the important mark of $66,000 for the first time since the end of last month, bringing joy and expectations to investors. This wave of gains not only caused the price of Bitcoin itself to rise, but also led to the activity of the entire cryptocurrency market. Along with the enthusiastic market response, the derivatives market encountered an unprecedented liquidation storm.
Over the past day, the price of Bitcoin has increased by 6%, a significant increase that has brought Bitcoin closer to its September high. Once this high is exceeded, Bitcoin will hit a new high not seen since July. This rise has not only excited Bitcoin investors, but also attracted widespread attention across the entire cryptocurrency market. After all, as the leader of the cryptocurrency market, Bitcoin’s price changes can often have a profound impact on the entire market.
Along with Bitcoin, other cryptocurrencies such as Ethereum (ETH) and Solana (SOL) also rose. Among them, the price of Ethereum rose by 8%, and the price of Solana rose by 7%, both exceeding the increase of Bitcoin. This shows that, led by Bitcoin, the entire cryptocurrency market is experiencing a round of recovery and rise. Investors' confidence in cryptocurrencies is gradually recovering, and the market activity is also increasing.
However, compared with the enthusiastic response of the market, the derivatives market has experienced a turbulence. According to CoinGlass data, a large number of liquidations have occurred in the cryptocurrency derivatives market in the past 24 hours. Liquidation means that when the loss of a contract exceeds a certain level, the platform will force the position to be closed to protect the interests of investors. In this liquidation storm, about 233 million US dollars of derivatives contracts were liquidated, almost all of which were short contracts.
These investors who bet on bearish results suffered heavy losses in this rally, with a total amount of $198 million, accounting for nearly 85% of the total liquidation amount. This shows that during the market's rise, short investors suffered a huge blow. They originally expected the market to fall, but the reality was the opposite of their expectations, causing them to have to bear huge losses.
Looking at individual cryptocurrencies, Bitcoin’s liquidation volume tops the list, almost twice that of Ethereum, which ranks second. Although Bitcoin’s liquidation volume accounts for a large share, it only accounts for 39% of the total. This means that altcoins have also occupied a considerable share in recent speculation. Investors are not only paying attention to mainstream cryptocurrencies such as Bitcoin, but are also beginning to turn their attention to other altcoins with potential.
In addition to Bitcoin and Ethereum, Solana's liquidation amount is also relatively high, reaching about $11 million. In addition, SUI and NEIRO are also among the top five with contract amounts of $7 million and $5 million respectively. Although the liquidation amounts of these cryptocurrencies are not as large as those of Bitcoin and Ethereum, they also show their activity in the market and the attention of investors.
Large liquidation events like today are often referred to as a "squeeze," and because this recent event involved a dominance of shorts, it has been called a "short squeeze." During a squeeze, liquidations feed back into the price movement that caused the liquidation, prolonging the liquidation and triggering a cascade of further liquidations. This chain reaction makes these events often extremely volatile and risky.
In general, the rise of Bitcoin has brought joy and expectations to investors, but it has also brought a huge impact on the derivatives market. In the future market, investors need to assess risks and opportunities more carefully to cope with possible fluctuations and changes. At the same time, regulators also need to strengthen supervision and risk prevention of the cryptocurrency market to ensure market stability and the interests of investors.
In any case, the breakthrough of Bitcoin and the rise of the market have brought new vitality and opportunities to the cryptocurrency industry. We look forward to seeing more innovation and development possibilities in the future market.
