Main navigation

$102 Million Liquidations Push Bitcoin Below $42,000 as Ethereum Goes Under $3,250: CoinGlass

News
Fri, 01/07/2022 - 09:22
article image
Yuri Molchan
Massive liquidations of futures trades have occurred in the past hour, pushing Bitcoin and Ethereum even deeper, after recent price drop
$102 Million Liquidations Push Bitcoin Below $42,000 as Ethereum Goes Under $3,250: CoinGlass
Cover image via stock.adobe.com

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News
Contents

Chinese crypto journalist Colin Wu has shared data from CoinGlass analytics platform about the large value of futures positions liquidated in Bitcoin and Ethereum in the past hour.

Following recent negative events for the crypto market that made Bitcoin decline from the $46,000 zone to the $42,000 level, BTC is now trading below $42,000, while Ethereum has been forced to drop to the $1,148 mark.

$102 in futures contracts liquidated in 30 minutes

According to data from CoinGlass, over the past hour (a 30-minute period within it), Bitcoin and Ethereum futures trades have seen $102 million liquidations. That has pushed Bitcoin to the $41,300 level (the current price is $41,578) and made Ethereum drop to $1,148 (ETH is currently trading at $3,201, having recovered a tiny bit). Liquidated Bitcoin positions totaling $$40 million and $42 million were liquidated in Ethereum contracts.

Prior to that, Bitcoin plunged from above $46,000 to the $42,000 area after the Federal Reserve promised an interest rate hike, the Bitcoin hashrate dropped significantly due to the Internet shutdown in the second-biggest mining hub, Kazakhstan (due to riots spreading in the country), and BTC dropped below the crucial support near the $45,000 level.

Barry Silbert bullish on BTC, investors increasing their exposure

Data from the CryptoQuant analytics vendor shared by Wu shows that the ELR (estimated leverage level) of Bitcoin on exchanges has hit 0.026, reaching a new all-time high. This is indicative of investors buying more and more Bitcoin on the dip as they keep taking on high leverage.

Meanwhile, crypto billionaire and founder of the Digital Currency Group and Grayscale, Barry Silbert, has tweeted that he is bullish on Bitcoin, privacy coins, as well as "small number of cryptos," apparently talking about this year, while he is bearish on conventional assets like real estate and stocks.

Related
El Salvador Loses Almost 15% as Bitcoin Retraces to $43,000

Peter Schiff says very few institutions actually bought BTC

Vocal crypto opponent and CEO of Euro Pacific Capital and SchiffGold, Peter Schiff, believed that the situation with institutions increasing their exposure to the flagship crypto is not as true as the media tells the community.

According to him, there are actually very few institutions that have bought BTC, and most of them, he says, sold by the end of 2021.

Those who bought Bitcoin last year, as per Schiff, suffered big financial losses due to the BTC price drop. The SchiffGold CEO predicts that 2022 will be worse for crypto than the previous year.

article image
About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.