Data shows that as BTC fell below the $63,000 level, about $533 million in long contracts for Crypto assets were sold.
Since hitting its all-time high (ATH) of $73,800, BTC’s fortunes have changed, with the digital asset shifting to bearish momentum.
BTC has continued its recent decline, with prices falling by more than 7% over the past 24 hours. The chart below shows the recent performance of the Crypto asset.
Registration address of OUYI, Huobi and Binance: http://18907.cc (copy and paste to open)
As shown in the chart, BTC has fallen to the $62,600 level for the first time in a few weeks. This means that BTC has fallen by more than 15% since its all-time high.
While BTC has underperformed over the past day, other assets in the sector have performed even worse on average, with some seeing double-digit losses.
Due to these fluctuations, the derivatives side of the market also saw a shock, with liquidations piling up on various exchanges.
When a contract’s accumulated losses reach a certain level, causing its open platform to step in and forcibly close the contract, it can be said to be “liquidated”.
According to CoinGlass, there have been multiple such liquidations in the crypto asset space over the past 24 hours. The table below details this market dynamics.
Nearly $657 million in crypto asset derivatives contracts appear to have been liquidated over the past day.
Given that today’s market price action is heavily skewed to the downside, it’s no surprise that the vast majority of the liquidation rush involved long-dated contracts.
More specifically, the long market suffered $533 million in liquidations, while the short market was hit by $123 million. More than 80% of the liquidations involved those who bet on BTC’s bullishness.
In terms of single liquidation amount, BTC and ETH once again topped the list, with liquidations of $191 million and $134 million respectively.
Among other assets, Solana and Dogecoin stood out with $39 million and $14 million in liquidations, respectively. Their large liquidations may be partly due to their larger declines than other well-known assets.
The chart below shows that despite the large liquidation volume, BTC open interest remains at relatively extreme levels.
Open interest measures the total number of contracts related to BTC in the derivatives market.
Generally speaking, BTC is more prone to volatility when this indicator is higher, so sharp price swings are likely to continue until this indicator cools down further.
