Bitcoin led the entire cryptocurrency industry in heavy liquidations of about $500 million, mostly involving long traders following the sudden selloff in the past 24 hours.
The crypto industry registered around $1.1 billion in total liquidations from more than 156K traders, during the past 24 hours, after Bitcoin price BTC $102 130 24h volatility: 1.0% Market cap: $2.03 T Vol. 24h: $23.15 B retraced below $100K. More than $800 million involved long traders, with Bitcoin pairs accounting for the lion’s share of about $486 million. The largest single liquidation happened on the OKX crypto exchange involving a BTC/USDT pair of about $18.9 million.
On the Binance cryptocurrency exchange, the total liquidations during the past 24 hours amounted to about $242 million, with 72% involving long traders. On the Bybit crypto exchange, more than $133 million was rekt during the past 24 hours, with 78% involving long traders.
Major Factors that Contributed to Heavy Cryptocurrency Liquidations Today
The overall interest of the cryptocurrency industry has increased in the recent past as shown by a multi-month peak in Bitcoin search on Google. The Bitcoin futures Open Interest recently surged to a new peak of above $66 billion but has since dropped by over 5% to hover about $61 billion on Friday, December 6, during the mid-European session.
The notable heated futures cryptocurrency market needed to cool down for the bullish momentum to continue. Moreover, Bitcoin’s daily Relative Strength Index (RSI) has been forming a bearish divergence as the underlying value grinds higher in the past few weeks.
Meanwhile, Meitu Inc, a Chinese investment holding company that also engages in an array of services, announced on Thursday that it had offloaded its 948 Bitcoins.
Some of the Bitcoin whales began taking profit as the BTC price rallied above $100K for the first time in its history.
On the other hand, retail traders continued to FOMO into Bitcoin’s bull run resulting in heavy liquidations. The attention of cryptocurrency traders has since shifted to the altcoin industry, as altseason flashes on the horizon.
Notably, the TOTAL2 market cap, which excludes Bitcoin, surged around 3% to hover about $1.56 trillion. On the other hand, Bitcoin dominance dropped by 1% to around 55% at the time of this writing.
What’s Next?
According to market data from Coinglass, Bitcoin’s Options open interest involved 64% calls vs 36% puts, indicating more cryptocurrency investors are anticipating another bull BTC rally beyond $100k soon. Moreover, the overall supply of Bitcoin on centralized exchanges continued to drop in the past 24 hours fueled by institutional FOMO.
On Thursday, the US spot Bitcoin ETF issuers registered a net cash inflow of about $766 million, led by BlackRock’s IBIT with around $770 million. Consequently, the US spot Bitcoin ETFs now hold total assets worth about $109 billion.
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