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The mega rally in the price of Bitcoin (BTC) toward the $100,000 level has sparked a significant liquidation of the broader crypto market. Per data from CoinGlass, the combined crypto market liquidation has topped $452 million in 24 hours. Notably, 160,022 traders were implicated in the liquidation.
Bitcoin led liquidation charge
The price of Bitcoin soared to an all-time high (ATH) of $97,862.63 overnight as mild upticks continued to push it upward. At the time of writing, the coin has slowed down, dropping to $96,987.24 but still maintaining growth of 3.99%.
Gamza KhanzadaevThis price outlook has forced a relatively more massive liquidation for short traders, who have lost $91.85 million, against $26.11 million for long traders. Following Bitcoin in the top liquidation streak is Ethereum, which has lost a total of $66.31 million.
These relatively lower liquidation figures hinge on the milder price moves that Ethereum has experienced. Despite the Bitcoin rally and multiple ATH breaches, Ethereum remains down 35.73% from its ATH of $4,891.70. Currently, ETH has added 0.5% to reach $3,139.91.
Crypto liquidations are not uncommon and are often recorded when the price of Bitcoin or other underlying currencies dramatically shift.
More liquidations ahead?
Short traders might have a lot more to worry about. This is because the price of Bitcoin appears likely to retain its growth streak. With proactive measures to buy more Bitcoin, firms like MicroStrategy have continued to fuel the rapid accumulation of the coin.
Alex DovbnyaWith this sustained demand and limited emissions through the Bitcoin halving, the coin might continually soar, further putting short traders at risk of liquidation. While the peak of the Bitcoin price rally remains unknown, general analyst consensus hints at a short-term surge above $100,000.
Alex Dovbnya
Arman Shirinyan
Dan Burgin