Following reports of BlackRock’s Spot Bitcoin ETF being listed on the Depository Trust & Clearing Corporation (DTCC) with the ticker IBTC, the BTC price had rallied above $35,000 based on investor expectations alone. The quick nature of this surge saw tens of thousands of crypto traders caught in the crossfire as over $400 million was liquidated in one day.
More Than 95,000 Crypto Traders Lose Their Positions
According to data from Coinglass, the crypto liquidation volumes ramped up quickly following the Bitcoin price surge. The platform reports that almost 95,000 traders were liquidated, with short traders bearing the brunt of these liquidation trends.
Of the $400 million liquidated in the 24-hour period, short traders accounted for 75.83 which came out to $303 million. Long traders were, however, not left out of the onslaught as $96.88 million in liquidation volumes still came from long positions despite the direction of the crypto market rally.
BTC liquidations cross $222 million | Source: Coinglass
The single largest liquidation order took place on the BTCUSDT pair on the Binance crypto exchange. This trader lost an eye-popping $9.98 million when their position was liquidated. In the same vein, Binance has also seen the highest liquidation volumes of all crypto exchanges with $133.88 million.
Bitcoin accounts for the overwhelming majority of liquidation volumes at $222.93 million. Ethereum comes second with $59.93 million in liquidation volumes. Solana clinched the third place with $10.35 million. But interestingly, Trellor (TRB), a low-cap altcoin that just made it into the top 200, snagged 4th place with $9.40 million in liquidations. The altcoin has been one of the most impressive performers through the market action as well, rising from a range of $50 to $96 before retracing.
Bitcoin Shows Strength
Although Bitcoin has since retraced from its 2023 high of $35,000, the leading cryptocurrency continues to show dominance. Daily trading volumes have already risen above $46 billion, which means that investors are coming back into the cryptocurrency en masse.
This suggests a willingness to purchase Bitcoin at higher prices and this will continue to prop up its price. Since buyers currently outnumber sellers in this market, it is more likely that the Bitcoin retracement is only temporary and a restart of the price surge can send BTC above $36,000 next.
Also, BlackRock’s ETF listing on the DTCC remains very fresh and is still providing fuel for the rally. This will likely continue for another couple of hours before exhaustion kicks in and leaves ample time for Bitcoin to regain its footing for another surge.
If Bitcoin crosses $36,000, then liquidation volumes are expected to rise even more. This could lead to one of the worst liquidation trends in 2023.
BTC price still holds steady above $34,000 | Source: BTCUSD on Tradingview.com
Featured image from YouHolder, chart from Tradingview.com
