Bitcoin Surges to $66,000, Crypto Derivatives Market Faces $127 Million Liquidation Wave
In a remarkable display of strength, the price of bitcoin soared on Wednesday, surging by over $4,200 from its lowest point of the day. This impressive 7.1% increase against the U.S. dollar propelled bitcoin above the $66,000 threshold, reaching a peak of $66,461 per coin on Bitstamp. As a result, the entire cryptocurrency market experienced a 6.2% rise, leading to the liquidation of 51,567 traders on various crypto derivatives exchanges throughout the day.
At 3:45 p.m. Eastern Time (ET) on Wednesday, bitcoin surpassed the $66,000 mark, climbing 7.1% relative to the dollar. At this time, the price of bitcoin stands at $66,300 per unit, with a global trading volume of $34 billion in the past 24 hours. Since its lowest price of the day, bitcoin’s value has increased by more than $4,200 during the trading sessions. Over the past seven days, bitcoin has seen a 5.2% rise against the greenback.
Bitcoin’s initial surge on Wednesday followed the release of the consumer price index (CPI) report by the U.S. Labor Department’s Bureau of Labor Statistics. On May 15, bitcoin’s primary trading pairs included USDT, FDUSD, USD, USDC, and KRW, with the Korean won accounting for 2.36% of bitcoin’s global trades. While the global weighted average price of bitcoin is $66,300, it traded at $67,632 on the South Korean exchange Upbit at 3:45 p.m. (ET) as well.
The substantial price increase in the crypto market on Wednesday led to significant liquidations among traders, with 51,567 traders being wiped out throughout the day. In the past 24 hours, derivative positions totaling $127.98 million were liquidated, including $83.39 million in crypto short positions. Specifically, $45.94 million of those positions were bitcoin shorts, and $17.88 million of ethereum (ETH) shorts were also liquidated. Additionally, $6.27 million in PEPE shorts were liquidated during the day.
This recent surge in bitcoin’s price, fueled by a positive CPI report, triggered a wave of liquidations, primarily affecting traders with leveraged positions. As $127.98 million worth of derivatives were cleared, this event highlights the high-risk nature of leveraged crypto trading, where significant price movements can either lead to substantial profits or wipe out investments in an instant. While leverage offers the potential for amplified gains, it also poses significant risks, as demonstrated by the swift liquidation of numerous traders’ positions on Wednesday.
What are your thoughts on bitcoin’s price surge on Wednesday? Feel free to share your opinions and insights in the comments section below.
