🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Bitcoin Dips 10% Post New ATH, Causing Over $300M BTC Liquidations

Published 06/03/2024, 11:30
Updated 06/03/2024, 11:45
© Reuters. Bitcoin Dips 10% Post New ATH, Causing Over $300M BTC Liquidations
BTC/USD
-
ETH/USD
-

Coin Edition -

  • The cryptocurrency market liquidated $1.05 billion last night, with Binance having the largest number of liquidations.
  • The flagship cryptocurrency, BTC, faced a 10% fall after reaching a new all-time high.
  • Data indicates that leveraged bets on crypto futures increased to over $66 billion in the past week.

According to data from Coinglass, over $1.05 billion worth of cryptocurrency was liquidated during the past 24 hours. Bitcoin, the largest cryptocurrency by market capitalization, reached a new all-time high (ATH) of $69,200 within the last 24 hours. However, its value fell by 10%, which may have been caused by $308 million worth of BTC being liquidated across the cryptocurrency market.

Ethereum was the second most affected cryptocurrency, with over $185.44 million worth of ETH being liquidated after hitting the $3,800 mark. The Bitmex exchange saw the largest single liquidation order valued at $9 million.

Interestingly, the rapid increase in Bitcoin’s price to its all-time high of $69,200 likely enticed some traders to use leverage, which multiplied their potential gains. Analysts have reported that some traders may have also decided to convert their holdings to stablecoins like USDC to lock in profits or hedge against further price drops.

Data indicates that leveraged bets on crypto futures increased to over $66 billion in the past week. Some token funding rates have also skyrocketed to over 100% annualized. Binance, one of the top crypto exchanges, saw the largest number of liquidations in terms of value within that $1.05 billion, with $401.42 million being liquidated.

Traders who bought new meme coins like FLOKI, WIF, and PEPE early on are also liquidating their assets, taking advantage of the sharp rise compared to just a few hours earlier. This suggests that traders may believe that the market has hit a peak.

The post Bitcoin Dips 10% Post New ATH, Causing Over $300M BTC Liquidations appeared first on Coin Edition.

Read more on Coin Edition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.