Over $1.17B of Bitcoin Longs Liquidated as Price Slumps Below $30K; What’s Next?

Bitcoin derivatives traders who opened bullish positions as the cryptocurrency reached its record high, near $34,500, are now staring at massive losses.

Data provided by ByBt.com shows that the BTC/USD market liquidated long contracts worth $1.17 billion as of 2130 EST Sunday. The stop-losses triggered as the Bitcoin price slumped back below $30,000 amid a corrective spot market move, leaving derivative traders with open short positions in a profitable state.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin Market Liquidation chart. Source: ByBt.com
Bitcoin Market Liquidation chart. Source: ByBt.com

Figures indicate that long position holders on Binance alone lost $339.37 million, followed by Huobi, whose traders suffered $258.1 million worth of losses. That eventually marked the Bitcoin market’s worst one-day liquidation after November 25 last year. On that day, long traders had lost about $999.52 million.

Bullish Anyway

None of the recent major long liquidations materialized into a broader bearish trend.

Spot traders remained long-term bullish on Bitcoin owing to its increasing prominence as a hedging asset among mainstream financial institutions and corporations. The one after November 25, for instance, saw the BTC/USD exchange rate climbing by as much as 114 percent to settle a record high of $34,810.

Many analysts admitted that institutional investors have lately utilized retail-led price dips to purchase Bitcoin en masse. As a result, the flagship cryptocurrency has rallied exponentially after developing concrete supports near $16,200, $17,650, $22,000, and the most recent $27,500.

For instance, a pseudonymous chartist said Monday that Bitcoin’s ongoing dip would wash out what he believes are “retail degens,” i.e., the cryptocurrency will move from weak to strong hands—those who would prefer to hold their investments long-term.

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