Bitcoin started a brutal bearish market about 24 hours ago when it first crossed the $10k mark. Since the beginning of such bear movements, bitcoin, alongside alts, have fallen drastically and further price plunge is impossible to underestimate. Bitcoin’s drop from $9400 to an intra-day low of $8600 has triggered $600 million in long liquidations on the crypto derivatives platform BitMEX.
$600.4 Million Long Liquidated On BitMEX.
Stats on crypto derivative exchange, BitMEX shows that over $600 million long liquidations have been executed on the crypto derivatives platforms recently. This comes in correlation with the propositions that BTC price drops usually instigate a massive contracts liquidation. This time, as BTC crashes towards $8k, long liquidations on BitMEX has soared in correlation.
Bitcoin Price Drop Responsible for Liquidations
According to a recent report by margin trading monitor Datamish, Bitcoin’s price fall has triggered $80.1 million in long liquidations on BitMEX.
Interestingly, the previous week saw $3.5 million short contracts being liquidated and generating about 54% of the volume on the 2nd of September
Further, observation of both the 4-hour chart for XBT/USD trading pair for the perpetual inverse swap contract on BitMEX clearly indicates the formation of a falling wedge pattern. This means that Bitcoin has a high inclination towards a lower correction in the short-term.
A recent study by Delphi Digital noted that the inflow of Bitcoin can be the determiner of significant selling pressure. Interestingly, this was the case in early July, when Bitcoin prices slumped significantly after crypto exchanges received lots of deposits in Bitcoin.
BitMEX Recently Liquidated $68 Milion In About 24 Hours
According to a recent report by coingape, margin trading on BitMEX has proven destructive to many traders on BitMEX recently. Within the past 24 hours, more than $68 million worth of BTC short were liquidated on the derivative exchange.
This figure, according to the report, is a lot more daunting when extended in periods to around 7 months. Since the beginning of the year, according to a crypto analyst on Twitter, $5 billion worth of short positions and $9 billion worth long positions have been liquidated on BitMEX.
I predict #Bitmex won’t be around in a few years! 🗑
On Bitmex in 2019: $5 billion worth of short positions got liquidated on BitMEX vs $9 billion long positions.
Total amount of real funds was $540 million on an average of 25X leverage positions. pic.twitter.com/k5nADAh4NI
— bitangler (@bitangler) September 3, 2019
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Staff writer at Coingape. Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
You can follow me on Twitter at @ShonubiDare or reach out to me at dare[at]coingape.com