Fri. May 24th, 2024

$126 million in Bitcoin longs liquidated As Bitcoin Price Slips Below $35k

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The huge liquidation is accompanied by a sharp drop in liquidity and trading volumes.

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Although traditional financial markets responded favorably to the lower-than-expected inflation data, showing a 3.2% yearly increase in the United States, the bullish momentum that had driven Bitcoin to impressive 30-day gains of 31.8% was losing steam on November 14. 

Despite the flat month-over-month inflation figures, Bitcoin’s price seemed overheated, leading to the liquidation of nearly $100 million within an hour.

Liquidated Bitcoin Longs

The sharp decline in Bitcoin prices can be attributed mainly to a significant shift in the Bitcoin futures market.  As a result, Over $97.9 million in bitcoin longs were liquidated Within an hour. In the 24 hours leading up to this, over $126.3 million in long positions were liquidated.

The liquidations on BTC longs were accompanied by low buying pressure from traders. Bitcoin trading volumes are down over $7 billion from a November high set on of $13 billion.

Bitcoin trading volume. Source: Newhedge

The absence of consistent liquidity and trading volume has led some analysts to debate whether the current Bitcoin price rally has staying power. If there is an upshot in liquidity, Bitcoin may quickly recover.

Bitcoin Wallets Still In Profits

Despite the Bitcoin price drawback on Nov. 14, over 83% of short term and long term holders are still in profit

With a record number of wallets still in profit, it is still below the Oct. 24 realized profit level. The Profit-taking that occured in October was supported by increased trading volume, which may have helped bolster Bitcoin price. 

The decline in trading volume combined with the high amount of investors in profit may lead to Bitcoin price continuing to fall if more traders start to realize profits.

About The Author

By Tony Chimdiuto

Diutocoinnews Admin. Send all publications to info@diutocoinnews.com.ng

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