$19 Billion in Bitcoin Short Liquidations Are Ready If This Happens

Bhushan Akolkar
July 17, 2024
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Highlights

  • Bitcoin's price surge to nearly $66,000 on Tuesday triggered over $200 million in liquidations across the crypto market.
  • Popular crypto analyst Rekt Capital highlighted that Bitcoin's break past $65,000 marks the beginning of a new bullish cluster zone.
  • CryptoQuant CEO Ki Young Ju said that fears around Mt. Gox's recent BTC transfers are overestimated.

The Bitcoin price has continued with its rally moving all the way closer to $66,000 on Tuesday, resulting in more than $200 million in liquidations across the broader crypto market. However, if the BTC price continues to surge further to its all-time high levels, it could lead to massive short liquidations of leverage positions.

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Bitcoin Short Liquidations to Cross $19 Billion?

As per data from Coinglass, more than $65.2 million in Bitcoin derivatives positions have been liquidated across the market in the last 24 hours. Of these, $34.8 million are in BTC short liquidations and $28.15 million in BTC long liquidations. A majority of these liquidations have happened on crypto exchanges OKX and Binance.

As per the BTC heatmap, if the Bitcoin price approaches $72,400 in the coming days, nearly $19 billion of BTC short liquidations are likely to happen.

Amid the strong Bitcoin price rally recently, market analysts believe that the BTC downtrend is over and investors could be eyeing a major uptrend going ahead. Popular crypto analyst Rekt Capital noted that with the BTC price crossing $65,000, it has entered a new cluster zone.

“The moment Bitcoin breaks $65,000 (blue) is the moment Bitcoin will form a new red cluster of price action,” Rekt Capital stated. As a result, BTC can now continue its rally to the top of the cluster region of $65,000-$71,500, thereby setting up the stage for the next rally.

Also Read: BlackRock Bitcoin ETF IBIT Crosses Record $18.5 Billion AUM In Just Six Months

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Don’t Overestimate Mt. Gox FUD

With crypto exchange Mt. Gox transferring 13K BTC on Tuesday, it stirred a major market reaction with investors expecting another selling pressure similar to the German government sell-off. However, Cryptoquant CEO Ki Young Ju downplayed all fears surrounding the potential impact of Mt. Gox asset liquidations on the Bitcoin market.

“MtGox FUD is overestimated,” Ki Young Ju remarked. Since 2023, approximately $224 billion worth of Bitcoin has been sold, yet the cryptocurrency’s price has surged by 350%. Ki Young Ju noted that even if the $3 billion from Mt. Gox were to be sold on Kraken, it would represent just 1% of the realized cap increase in this bull cycle, a level of liquidity the market can manage.

Also Read: Bitcoin ETF Inflows Drive Total AUM to Record High Over $16 Billion

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.