Bitcoin’s Rise Above $20K Causes Liquidation of Over $1bln Worth Trades
In the last 24 hours, Bitcoin (BTC) and Ethereum (ETH), the crypto sector’s two biggest digital assets, have led a revival in cryptocurrency industry, reviving hopes that the infamous “Uptober” meme could live up to its potential.
As per Bitcoin Monthly Return, the top cryptocurrency has had monthly increases in October 10 times during the previous thirteen years. The surge seen in October 2021 , for instance, paved the way for Bitcoin to achieve its all-time high of almost $69,000at the start of November.
In 2022, nevertheless, investor anxiety increased as Bitcoin battled between $19,000 and $20,000 for the most of October. The top cryptocurrency, nevertheless, climbed 5% on Tuesday to recapture $20,000 for the initial time since early October, with the rise extending overnight to a prevailing price of $20,659, or 7.2% in the past 24 hours, according to CoinGecko.
Much more striking is Ethereum’s price increase, as the numero uno altcoin surged, even more, about 14% during the same period and was trading about $1,536 at the time of writing. As per statistics from CoinGlass, the most recent price movement resulted in a staggering $1.13 billion being wiped across exchanges in the previous 24 hours, with over 87% of that value, or $979 million, being short positions, or wagers against price gains.
In cryptocurrency markets, liquidation relates to the closure of positions by an exchange owing to a portion or whole loss of the original margin. This occurs when a trader is unable to meet the margin calls for a leveraged trade, meaning they lack adequate cash to maintain the open position.
Approximately $550 million were liquidated in Bitcoin, trailed by $476 million in Ethereum, with the single biggest liquidation trade taking place on the OKX platform for a $3.05 million ETH-USDT conversion. FTX had the biggest amount of liquidations across marketplaces, totaling $862 million, with over 77% being short positions.