Over $150 million of long crypto positions were liquidated in the past 24 hours.
Posted October 11, 2024 at 9:43 AM ET.
Bitcoin fell as much as 4% on Thursday, at one point trading at a three-week low of $58,930. This negative price move comes amid a broader market decline, with most major cryptocurrencies in the red. The exception is Uniswap's native token UNI, which soared ahead of the announcement revealing its upcoming Layer 2 network.
According to data from CoinGlass, 57,201 traders were liquidated in the past 24 hours, bringing total liquidations across crypto exchanges to more than $188 million.
At least $150 million worth of these liquidated positions were from traders placing leveraged bets on rising Bitcoin prices. Only $38 million in short positions were liquidated during the same period.
The single largest liquidation order was placed on Binance for the BTC/USDT trading pair worth $10.5 million. This trade alone accounted for one-fifth of the total long Bitcoin positions liquidated.
According to CryptoQuant analyst JA Maartunn, the selling pressure was likely caused by the heavy weight on Coinbase. Maartung noted that Coinbase’s premium fell to -$41 on October 8th, suggesting that financial institutions are offloading the coin.
Coinbase Premium is an indicator that measures the difference between the price of Bitcoin on Coinbase and the price on Binance. This is an indicator typically used to measure the demand for Bitcoin among different investor groups, especially US investors and global investors.
On October 10th, Coinbase Premium fell to -$72.6, suggesting that US investors continue to sell the coin heavily.
“The selling pressure is not coming directly from Silk Road Bitcoin, which still has 69,370 BTC (approximately $4.1 billion) stored at this address,” Maartunn said.
