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Bitcoin's second-quarter started off tumultuously, with the options market once again serving as a harbinger of intense volatility, especially indicating a downside trend reversal. Bitcoin briefly plummeted from its high of $70,000 to $65,500.
During the same period, Ethereum's value dropped to a low of $3,320.
Significant price fluctuations marked the beginning of the second quarter. According to the latest market update from QCP Capital, the "pace of action" was driven by a significant amount of liquidation, particularly on platforms known for high retail volumes like Binance. This essentially led to the funding rate plummeting from an astonishing 77% to equilibrium levels. This adjustment pushed spot prices back into the range of $60,000 to $72,000.
"The speed of this move was due to large-scale liquidations on retail-centric exchanges such as Binance, with funding rates dropping from as high as 77% to flat. This move put spot prices back in the mid-range of 60-72k. While funding perp has compressed, the rest of the forward curve remains very high."
Increased volatility within 24 hours led to a surge in liquidation events on centralized exchanges, coinciding with Bitcoin breaking below the $66,000 mark. Data compiled by CoinGlass revealed liquidations totaling around $500 million across multiple centralized cryptocurrency exchanges. Of this, nearly $390 million was primarily from long positions, with short positions accounting for the remainder.
Approximately 155,000 traders were liquidated in the past 24 hours. Meanwhile, the largest single liquidation order occurred on OKX – the ETH-USD-SWAP, valued at $7.48 million.
Bitcoin and Ethereum faced significant liquidations, with Bitcoin suffering the most substantial losses, totaling over $242 million during the same period. Approximately $90.68 million was attributed to long positions, while short positions accounted for $40.25 million. Ethereum also saw significant liquidations totaling $81.52 million, with long positions amounting to $65.03 million and short positions $16.49 million.
Other top altcoins also experienced similar setbacks. For instance, Solana's liquidation amount was slightly above $15 million, with the majority consisting of $13 million from long positions. On the other hand, $2.06 million from short positions was liquidated. Following closely was Dogecoin, with liquidations totaling $14.76 million. |
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Post time 14-4-2024 01:30:34