Crypto Bulls See $1 billion squeeze when they see Bitcoin, Alts crashes
Data shows that long-term cryptocurrency investors have suffered huge beatings over the past day due to the plunge of Bitcoin and altcoins.
Bitcoin briefly lost $103,000 in the crash
The cryptocurrency market has been shocked over the past day as both Bitcoin and altcoins have experienced a certain level of water. Currently, BTC has dropped by about 2%, but the decline earlier in the day has been even worse.
Below is a chart showing the assets’ recent performance.
The value of the metric appears to have gone through a plummet during the past day | Source: BTCUSDT on TradingView
From the chart, it is obvious that Bitcoin briefly slipped $103,000 during the crash. After the rebound, the price of cryptocurrency is now back to $104,800.
Negative price action generally takes a greater acumen to other assets in the industry, such as Ethereum (ETH), Solana (Sol) (Sol) and Cardano (ADA) that have observed losses of more than 7%.
Tensions in the Middle East soared in the Middle East after Israeli air strikes on Iran, and bearish waves in the market have arrived, fears will further escalate and increase sentiment for investors.
Like any other turbulent event in the cryptocurrency industry, the latest sharp price action is accompanied by chaos in derivatives.
Cryptocurrency clearing has exceeded $1 billion in the past 24 hours
According to Coinglass, the cryptocurrency market has faced a lot of liquidation in the past day. “Liquidation” means the powerful closure of any open contract after being launched underwater at a specific percentage (as defined by the platform).
Here is a table showing how digital asset liquidation figures have been found for the past 24 hours:
Looks like the long investors were very disproportionately affected by the event | Source: CoinGlass
As mentioned above, the cryptocurrency sector has a total of US$1.13 billion in liquidation within this window. Among them, the $1 billion contract involved is a long-term position. That is, they bet on bullish results in the market.
Naturally, the latest price action would have caught these investors’ measures, which is why so many investors ended up with the liquidation campaign.
For events like this, a large number of contracts are called squeezes. Since the Lang people account for the vast majority of the recent squeeze, the activity will be called the long squeeze.
Below is a table showing how the contribution of a single symbol is looking for such a liquidation squeeze.
The heatmap of liquidations in the sector | Source: CoinGlass
Bitcoin and Ethereum have been the top spot like the usual list, with liquidation of $451 million and $300 million respectively. In Altcoins, Solana stands out with its $53 million squeeze.
Featured images from dall-e, coinglass.com, charts from tradingview.com
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.
