In recent times, the Bitcoin (BTC) markets incurred volatility that led to the liquidations of long and short positions which affected both buyers and sellers remarkably. It is such that there was about $223 million in 24-hour margin calls on BitMEX platform being evenly spread between Bitcoin shorts and longs.
As at press time, long positions liquidated were worth somewhat more than $111.5 million, while short positions worth $111.3 million. Long positions represent 50.04 percent of the total liquidation, while short positions represent 49.96 percent, based on data by Cryptometer. The total value of altcoins liquidation is $230 million.
At first, there was more liquidation from short positions when the price of Bitcoin surged by more than 8.78 percent within four hours from $9,560 into fresh highs of $10.4k.
Nonetheless, the upsurge into five-figure price levels proved to be short-lived, as BTC consolidated close to $10.2k for about 14 hours, and eventually paved way for a serious 10 percent decline in less than four minutes to $9,150. Since then, Bitcoin has been consolidating within a range from $9.4k to $9,550, with numerous traders anxious about its immediate major.
The price decline that happened suddenly prompted familiar outages on leading exchanges, as users reported overloads on BitMEX platform with slippage driving prices to as low as $8.6k on the platform. Even Coinbase went offline as Bitcoin incurred an upsurge over $10k. A cryptocurrency trader posted the following on Twitter when it happened:
“Bitcoin just dropped to $9300 on Coinbase. It went to $8600 on Bitmex. Not sure how anyone trades there.”
Both buyers and sellers in the Bitcoin market suffered heavily amid yesterday’s volatility, while ETH and XRP long positions represent about 88 percent of each market’s respective 24-hour liquidations on BitMEX. ETH Long positions worth $3.65 million were wiped out, while XRP long positions worth $1.74 million were liquidated overnight. Likewise, over 99 percent of BCH, LTC, and EOS positions liquidated within the previous 24 hours on BitMEX were long.