BitMEX closes out the year nearing $20 billion in total liquidations on its XBT contract as the price of Bitcoin balances lightly at key support levels at $7,200 USD. Despite the bloody situation across the board in 2019, BTC traders still hold faith in a bullish reversal as we head to the block reward halving in May.
XBTUSD contract liquidations soar by 20%
BitMEX XBT/USD contract liquidations soared by over 20% in 2019 from the figure recorded in 2018 to top $19.9 billion over the course of the year. With the leverage ratio averaging 25X over the course of the year, close to $800 million USD in traders funds were liquidated during the period. Arthur Hayes must be a happy man closing out the year in such profit.
Through the course of the year, ~$20 billion got liquidated on @BitMEXdotcom, a ~20% increase since last year.
Assuming an average leverage of 25x:
~$800 million of user funds got liquidation on BitMEX during 2019.
— Unfolded (@cryptounfolded) December 29, 2019
Data collected on Datamish shows bulls were heavily impacted in the bloodshed as a total of $12.715 billion worth of XBT/USD long contracts were liquidated, representing 63% of the total liquidations. The bulk of the contracts were liquidated in the final 6 months of the year as the market turned bearish from yearly highs of $13,800 USD.
Despite the dominance of XBT longs liquidated on BitMEX, the total value increased by partly 17.6% in 2019 indicating a larger growth on the number of short contracts liquidated. Following a rather successful year that has seen BTC grow by 80%+, bears have suffered compared to 2018 as the value of XBT shorts liquidated, grew by 30% to $7.232 billion USD.
A positive 2020 for BTC?
Despite the rising value of liquidated XBT contracts, traders seem to hold on faith of a possible bullish run come early 2020. Could we be in a consolidation phase First of all, the halving is only a few months away, and there is a tendency in the market to accumulate BTC some months before the event in anticipation of a supply cut. Even if demand for BTC remains relatively the same, the price is expected to rise (and possibly hit an all-time high) come the end of next year.
Moreso the longer timeframe charts shows a possible flipping in price in either direction as the price balances lightly on key support region between $7,000 USD and $7,300 USD.
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Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist. Follow him at @lujanodera.