Data shows that the cryptocurrency futures market has seen liquidations worth $700 million in the past day, while Bitcoin has experienced its volatility.
Bitcoin has seen intense price action over the past 24 hours
The past day has been a bit of a rollercoaster for Bitcoin, with the asset registering sharp price action in both directions but ultimately moving higher as the bulls won.
The chart below shows what the price action for the cryptocurrency has looked like recently.
The price of the asset seems to have enjoyed sharp bullish momentum recently | Source: BTCUSD on TradingView
The chart shows that Bitcoin initially witnessed a sharp bullish momentum, with the coin not only breaking above the $60,000 level but also rising towards the $64,000 mark.
However, this peak, the peak of the year so far, was short-lived, as BTC plummeted spectacularly below $59,000. The asset has since recovered to higher levels and is now hovering around $62,700.
The rest of the cryptocurrency sector has also experienced its volatility, with prices fluctuating between coins. As is usually the case with such sharp price action, the futures market has seen a lot of liquidation.
The Crypto Futures market has been busy over the past day
According to data from MintGlassThe cryptocurrency futures market has witnessed the liquidation of contracts worth over $700 million in the past 24 hours.
The table below shows the relevant information about the liquidations.
A massive amount of liquidations appear to have occurred in the past day | Source: CoinGlass
It appears that only $131 million of the liquidations occurred within twelve hours, indicating that most of the flush occurred within the preceding half-day period. This makes sense as Bitcoin was the most volatile within this window.
It also appears that the long-short ratio has been fairly balanced in this liquidation, even though the price has risen over the past day. This could indicate that aggressive desire emerged as Bitcoin approached $64,000, and the subsequent pullback wiped out these top buyers.
The table below shows what the distribution looked like for the different symbols.
Looks like BTC has topped the charts once more | Source: CoinGlass
As is generally the case, Bitcoin futures contracts have once again been responsible for the majority of the total market liquidations, contributing approximately $270 million.
However, what is different this time is that this share, although the largest, does not even account for half of the total number of liquidations. This could come down to speculators now playing with altcoin positions after gaining confidence from BTC’s price increase.
Dogecoin, the best performing among the top coins with a 34% jump, has taken the largest share among alts, with nearly $51 million in liquidations.
Featured image by André François McKenzie on Unsplash.com, CoinGlass.com, chart from TradingView.com
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