Cryptocurrency Market Faces Significant Liquidation as Traders Bet on Long Positions
Major cryptocurrencies on Thursday evening dropped as traders betting on long positions faced substantial liquidation. According to the data from Coinglass, the past 24 hours have seen over $200 million worth of cryptocurrency long positions liquidated. Specifically, for BTC, longs worth over $65 million were liquidated, while for ETH, over $27 million in longs faced the same fate. The total number of traders liquidated in this period stands at 90,781, with the total liquidation amount reaching $227.91 million for both long and short positions. Notably, the largest liquidation order occurred on Binance for BTC-USDT, amounting to $7.31 million.
BTC and ETH Longs Worth Over $200 Million Liquidated in 24 Hours
The recent significant drop in major cryptocurrencies has resulted in the liquidation of long positions worth over $200 million. BTC longs worth over $65 million and ETH longs worth over $27 million were liquidated in the past 24 hours. This has led to the liquidation of 90,781 traders, with the total liquidation amount reaching $227.91 million for both long and short positions. The largest liquidation order occurred on Binance for BTC-USDT, amounting to $7.31 million.
Bitcoin ETFs’ Introduction and Impact on BTC Price
Since the introduction of the approved spot Bitcoin ETFs on Jan. 11, the price of Bitcoin has experienced a modest increase followed by a subsequent decrease of approximately 13%. Data updated as of Wednesday reveals that the new spot ETF issuers collectively acquired over 68,000 bitcoins within their first week of trading. On the other hand, Grayscale’s GBTC has offloaded approximately 40,000 Bitcoins, resulting in a net increment of about 28,000 Bitcoins to the Bitcoin ETFs.
Top Gainer in the Cryptocurrency Market: Flare, Conflux, and Astar
The top gainer in the cryptocurrency market in the past 24 hours is Flare, with a gain of +5.60%. Conflux follows with a gain of +3.83%, and Astar with a gain of +1.93%. These cryptocurrencies have shown positive performance while the rest of the market experienced a decrease of 0.92% in the global cryptocurrency market cap, which now stands at $1.68 trillion.
Market Updates: Tech Companies Drive Market Upwards, Treasury Yield Rises
On Thursday, tech companies, spearheaded by Apple, drove the market upwards, propelling the major averages into positive territory. The tech-heavy Nasdaq Composite surged 1.35% to close at 15,055.65, while the S&P 500 advanced 0.88% to end at 4,780.94, now only 15.62 points, or 0.33%, away from its closing record. The 10-year Treasury yield rose to 4.14% as fresh jobs data indicated ongoing tightness in the labor market. Investors are apprehensive that a thriving labor market, combined with robust consumer spending, may lead to fewer rate cuts from the Federal Reserve than initially anticipated.
Disclaimer: This article is not investment advice. All rights reserved.
Analyst comment
1. Cryptocurrency Market Faces Significant Liquidation as Traders Bet on Long Positions: Negative news. The liquidation of long positions worth over $200 million indicates a market downturn and potential losses for traders. The market may continue to face volatility.
2. BTC and ETH Longs Worth Over $200 Million Liquidated in 24 Hours: Negative news. The liquidation of long positions for BTC and ETH indicates a decrease in investor confidence and potential market instability. Traders may need to reassess their strategies.
3. Bitcoin ETFs’ Introduction and Impact on BTC Price: Neutral news. The introduction of Bitcoin ETFs has led to an increase in Bitcoin’s price initially, followed by a decline. The impact on the market remains to be seen, as more data is needed to determine the long-term effect.
4. Top Gainer in the Cryptocurrency Market: Flare, Conflux, and Astar: Positive news. These cryptocurrencies have shown positive performance while the overall market experienced a decrease. It indicates that there are still opportunities for gains in selected cryptocurrencies.
5. Market Updates: Tech Companies Drive Market Upwards, Treasury Yield Rises: Positive news. The market has been driven upwards by tech companies, and the S&P 500 is approaching its closing record. However, the rising Treasury yield indicates concerns about potential interest rate changes. The situation may lead to cautious investor sentiment.
