Following reports that BlackRock’s Spot Bitcoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC) with the ticker IBTC, the BTC price had risen above $35,000 based on investor expectations alone. The rapid nature of this rise left tens of thousands of crypto traders caught in the crossfire as more than $400 million was liquidated in a single day.
More than 95,000 crypto traders are losing their positions
According to data from Coinglass, crypto liquidation volumes increased rapidly following Bitcoin’s price surge. The platform reports that nearly 95,000 traders have been liquidated, with short traders bearing the brunt of these liquidation trends.
Of the $400 million liquidated in the 24-hour period, short traders accounted for 75.83, amounting to $303 million. However, long traders were not left out as $96.88 million in liquidation volumes still came from long positions despite the direction of the crypto market recovery.
BTC liquidations cross $222 million | Source: Coinglass
The largest liquidation order occurred on the BTCUSDT pair on the crypto exchange Binance. This trader lost a whopping $9.98 million when his position was liquidated. In the same vein, Binance has also seen the highest liquidation volume of all crypto exchanges with $133.88 million.
Bitcoin is responsible for the vast majority of liquidation volumes at $222.93 million. Ethereum ranks second with $59.93 million in liquidation volumes. Solana took third place with $10.35 million. But interestingly, Trellor (TRB), a low-cap altcoin that just cracked the top 200, came in fourth with $9.40 million in liquidations. The altcoin has also been one of the most impressive performers during the market action, rising from a range of $50 to $96 before bouncing back.
Bitcoin shows strength
Although Bitcoin has since retreated from its 2023 high of $35,000, the leading cryptocurrency continues to show dominance. Daily trading volumes have already surpassed $46 billion, meaning investors are returning to the cryptocurrency in droves.
This suggests a willingness to buy Bitcoin at higher prices and this will continue to support its price. Since there are currently more buyers than sellers in this market, it is more likely that the Bitcoin retracement is only temporary and a restart of the price increase could subsequently push BTC above $36,000.
Furthermore, BlackRock’s ETF listing on the DTCC remains very current and continues to fuel the rally. This will likely continue for a few more hours before exhaustion sets in, leaving plenty of time for Bitcoin to regain its position before a new wave.
If Bitcoin crosses $36,000, liquidation volumes are expected to rise even further. This could lead to one of the worst liquidation trends in 2023.
BTC price still holds steady above $34,000 | Source: BTCUSD on Tradingview.com
Featured image from YouHolder, chart from Tradingview.com