Bitcoin Surpasses $67K, Leading to $120M in Crypto Positions Liquidated
Bitcoin reached a new milestone on Friday as its price soared past the $67,000 mark, peaking at $67,482 per unit. This is the highest value the cryptocurrency has reached since late April. The surge in price has resulted in the liquidation of approximately $45 million in leveraged bitcoin short positions in just one day.
The elimination of bitcoin short positions continues to take place. These positions, which involve bitcoin derivatives, give investors the opportunity to amplify their potential gains if the price of bitcoin decreases. However, if the price moves in the opposite direction, these positions face the risk of liquidation.
By noon Eastern Time on Friday, Bitcoin reached an intraday high of $67,482 per unit. As a result, a total of 41,829 traders were wiped out, with $120.07 million worth of positions being eradicated. Out of these positions, $80.65 million were short bets, while $39.42 million were long bets placed on the rise of crypto prices. Within the past 24 hours, approximately $44.89 million in bitcoin shorts were liquidated by 12 p.m. EDT on Friday.
According to coinglass.com metrics, the liquidations in the past 24 hours also included $24.01 million in Ethereum shorts, $7.37 million in SOL shorts, and $2.76 million in LINK shorts. Both short and long positions in derivatives markets carry substantial risk, particularly in the volatile crypto market. The swift and unpredictable movements of bitcoin prices, as witnessed this week, have led to the downfall of short traders.
Most of the liquidations within the 24-hour period originated from Binance, with $19.3 million worth of wipeouts. Okx ranked second with $10.33 million in liquidations. Other notable exchanges that experienced significant liquidations were Bybit, Coinex, and Bitmex.
In total, Binance and Okx accounted for $29.63 million of the liquidations, representing 66% of the liquidation activity in the past day. The recent increase in bitcoin’s value has had a significant impact on traders and has highlighted the inherent volatility of the emerging market of cryptocurrencies.
What are your thoughts on the liquidation of bitcoin short positions on Friday? Feel free to share your opinions in the comments section below.
