Bitcoin Price Plunge Causes Over $200M in Protracted Liquidations on Crypto Derivatives Exchanges
On February 24, 2023, the price of Bitcoin above the $23,000 threshold and then surged to a high of $23,829 per unit on March 1st. At 8 p.m. Eastern time on March 2, the price of bitcoin fell and fell below the $23,000 mark. This drop resulted in $237.97 million worth of long liquidations across a variety of crypto derivatives exchanges. Of that, $206 million was liquidated on March 2 alone.
Bitcoin derivatives record $237 million liquidated in 24 hours
In the last 24 hours, 65 cryptocurrency derivatives exchanges recorded a trading volume of $171 billion, a 21.85% change from the previous day. Over the course of February, trading volume and open interest for bitcoin futures surged, totaling $791 billion, with Binance accounting for $468 billion of that amount.
On February 21, 2023, total open interest in bitcoin futures peaked at $9.73 billion but has since fallen to $9.06 billion through March 2. The price of BTC stayed above the $23,000 threshold for about seven days before March 2.
However, on Thursday, the price dropped to a low of $22,259 per coin. Long positions were plentiful prior to the drop, and according to Coinglass stats, 78,116 traders were liquidated when the price fell at 8 p.m. ET. The total liquidations since the price change is $237.97 million, with the largest liquidation taking place on Okx.
On March 2nd alone, there were $206 million worth of liquidations, with 90% of the positions being long. According to Coinglass, a BTC/USD swap on Okx was worth about $4.16 million. Binance, Bybit, and Okx saw the most liquidations over the past 24 hours, followed by Huobi, Coinex, and Deribit.
On March 2, there were $9.2 million in short positions betting against the rising value of BTC. Liquidations on March 2 almost matched the number of long liquidations on February 8, when $254 million in long positions were wiped out. The March 2 liquidations were more in line with those of January 17, which liquidated $190 million in long positions.
What do you think caused Bitcoin’s recent price drop and how do you think it will affect the future of the cryptocurrency market? Share your thoughts in the comments below.
photo credit: Shutterstock, Pixabay, WikiCommons
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Source: Crypto News Deutsch
