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Data shows a large number of long liquidations have occurred in the cryptocurrency market as Bitcoin and other assets have plunged.
Crypto Liquidations Have Surpassed $712 Million Over The Past Day
According to data from CoinGlass, chaos has occurred on the derivatives market following the volatility Bitcoin and the company have gone through during the last 24 hours.
Below is a table that shows how the liquidations have looked for the cryptocurrency sector within this window.
As is visible, almost $712 million in cryptocurrency contracts have seen forceful closure from their platform in the past day. About $477 million of these came during the last twelve hours alone.
Bitcoin and the altcoins, especially, have seen a decline in this period, so it’s not surprising to see that the liquidations have overwhelmingly affected the long investors. More specifically, the holders betting on a bullish outcome have been involved in more than 90% of the flush.
A mass liquidation event like this latest one is popularly known as a squeeze, and given the sharp imbalance toward the bulls, this particular event would be called a long squeeze. During a squeeze, a large amount of liquidations get triggered at once and feed back into the move that caused them. This unleashes a cascade of further liquidations, making such events quite volatile.
As for which of the individual tokens contributed the most to the long squeeze, the heatmap below shows it.
Bitcoin and Ethereum, the top two cryptocurrencies in terms of market cap, have also come out on top in this list, with the former observing liquidations of $221 million and the latter that of $116 million.
The third-ranked coin, however, hasn’t been XRP, but rather Solana, which is a couple of spots lower in terms of market cap. SOL’s $32 million in liquidations may be down to the fact that it has seen a larger decline than XRP.
While Bitcoin has seen a push down during the past day, its downfall actually started much earlier, with the high around $112,000 from May 22nd acting as the top so far. According to a report from the on-chain analytics firm Santiment, this peak coincided with a spike in whale activity.
The indicator displayed in the chart is the “Whale Transaction Count,” which tells us about how many whale-sized transfers are occurring on the BTC network every day.
It would appear that both versions of this metric (tracking transactions valued at more than $100,000 and $1 million) surged to a high level earlier in this month, a potential sign that profit-taking from these humongous entities forced Bitcoin toward a top.
Bitcoin Price
BTC saw a dip under the $105,000 level earlier in the day, but it appears the coin has since observed a small rebound as it’s now back at $105,800.
Featured image from Dall-E, Santiment.net, CoinGlass.com, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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