Cryptocurrency Exchanges Cryptocurrency News Price Analysis

Bitcoin’s Rally Beyond $20,500 Creates Huge Liquidations

Keith Simmons

The cryptocurrency market has recently experienced some recoveries as of Wednesday. The prices of top crypto assets recorded significant surges. Bitcoin price, for instance, rose by over 6% to trade at over $20,600 as of the time of this report.

Sudden Market Surges

Ethereum, on the other hand, recorded a gain of 14% in the last 24 hours. It now trades at over $1,500. 

On a general note, the cryptocurrency market capitalization has risen by nearly 7.29% in 24 hours. It currently stands at $996. 83 billion as of the time of this report.

The sudden rise that the crypto market is experiencing has now created a lot of liquidation. This comes majorly from traders who were out to short the bear market in the first place.

According to reports from Coinalyze, lots of contracts have been liquidated in the last 24 hours. The total value of the liquidation is said to be worth about $1.1 billion. 

The report further clarified that perpetual contracts were the majority of them. And they accounted for about $1 billion worth of the liquidations. Futures contracts were only worth some $6.8 million of the total liquidation.

With regard to the type of trade, most of the liquidations in question were short positions. And this type saw liquidations to the tune of $908.1 million over the last 24 hours. Whereas, perpetual short positions had a total liquidation to the tune of $901.6 million.

Varying Liquidation Sales

However, long positions that came from traders who missed the time of the bullish rally saw liquidations. Theirs was a result of the renewed volatility. Overall, Coinalyze said long positions worth close to $142.1 million were liquidated in the last 24 hours.

FTX crypto exchange recorded more than $745 million worth of short liquidations. It also reported more than $115 million worth of long position liquidations. 

Binance reported in second place having seen short positions liquidations worth $56 million. It also saw long position liquidations worth $14 million.

OKX crypto exchange also saw its fair share of liquidations. The exchange reported short position liquidations worth $39.58 million. It also saw long position liquidations worth $4.40 million.

At the fourth position is Bybit which saw short position liquidations worth $31.30 million. And its long positions liquidations were worth $4.46 million.