Yesterday’s sudden collapse resulted in a 14% drop in Bitcoin price (BTC) from around $ 9,450 to $ 8,101 in less than 15 minutes. This seems to have rocked excessively voluminous margin traders who longed to hit $ 10,000 with a large margin.
According to the market data aggregator cryptometer, BitMEX alone liquidated over $ 295 million, 98% of which were long positions. The liquidated short positions, on the other hand, totaled USD 5.7 million.
$ 290 million was processed in BitMEX within 24 hours
Approximately 93% of yesterday’s settlement took place on the BitMEX XBT / USD markets, with Ripple (XRP) settlement being 4.1% at USD 12.3 million and Ethereum (ETH) margin adjustments accounting for 2.2%% with USD 6.5 million
XRP and ETH short position settlements accounted for only 0.02% and 0.22% of total settlements in the respective markets.
Long positions at $ 10,000 suffer heavy losses
Liquidations are likely to have broken the long positions of many retail investors, hoping to benefit from the forthcoming halving.. What you may not have considered is that Bitcoin has already gained 150% in less than two months.
Many of the major cryptocurrency exchanges have fueled the halving hype in recent weeks and published articles highlighting bullish cases for block reward advertising.
The exchange intensifies the hype before halving
On May 5, Bittrex Global emailed the subject to its users “Buy more Bitcoin before you cut it in half!” This email informed the mailing list that the exchange had increased the credit card limits “on time to halve Bitcoin”. Traders who bought BTC on May 5th would currently be in break even after suffering losses during yesterday’s collapse.
The high-leverage futures exchange was held on May 9 Bybit released a report to examine the state of the market before halving as part of a new BTC test in the $ 10,000 range. The report presented several cases of an upward trend, as opposed to just four sentences that provide reasons why the price might be included in the short term.
Traders who bought at $ 10,000 would currently have a 15% loss, except for those who buy with 5x or more leverage that would have been liquidated during the sudden collapse.