Crypto Market Shaken: $460 Million in Longs Liquidated as Bitcoin Slips Below $90,000
The volatile crypto derivatives market has experienced a significant shake-up, with over $460 million in long positions liquidated in the last 24 hours. This dramatic event unfolded as Bitcoin and other major digital assets underwent a sharp retracement, catching many bullish traders off guard.
Market-Wide Liquidations Mount
According to recent data, the crypto derivatives market saw more than $462 million in liquidations. A staggering $418 million of this total, representing over 90%, comprised bullish bets, commonly known as "longs." This mass liquidation was primarily triggered by a broad downward movement across various tokens, which pushed Bitcoin's price below the crucial $89,600 mark. Bitcoin itself bore the brunt of the squeeze, accounting for $132 million in liquidated positions. Ethereum followed closely behind with $116 million in losses. Interestingly, Zcash (ZEC) emerged as a notable casualty, securing the third spot with $24 million in liquidations. This unexpected prominence suggests Zcash may have experienced a particularly sharp price drop, catching out traders who had less exposure to typical top altcoin movements like XRP or Solana.
Open Interest Re-expansion Faces Reality Check
The recent price action indicates a pattern where Bitcoin's recovery, particularly above $94,000, encouraged many traders to open new long positions. However, these newly established bets were quickly swept away as the market corrected. This incident follows a period between October and November when bearish price action similarly forced traders to reduce risk, impacting Open Interest figures. Despite this, the futures market has recently shown signs of "re-expansion in Open Interest," implying investors were gradually rebuilding their positions before this latest downturn. As of writing, Bitcoin is trading around $89,500, registering a 2% decline over the past day. This swift wave of liquidations underscores the inherent risks in highly leveraged derivatives trading, especially when market sentiment shifts abruptly following price fluctuations.
