Bitcoin Soars to $122K, Sparking Major Liquidations
By: Eva Baxter
Bitcoin's recent surge to $122,000 ignited significant activity across crypto markets, primarily affecting traders holding short positions. Over the past 24 hours, the derivatives market witnessed approximately $333.56 million in liquidations, heavily skewed towards short positions totaling $212.59 million. This dynamic was driven by Bitcoin's 2% price increase, enabling it to break through the formidable resistance level at $118,000, and reach new heights.
Bitcoin's rally not only exhibited the strength of long positions but also highlighted the market's concentration on the two largest cryptocurrencies; Bitcoin and Ethereum, together they accounted for $115 million and $93.22 million in liquidations respectively, representing roughly 62% of the total. This highlights the prevailing market behavior, where the largest assets usually dominate the pulse of the market while other altcoins play catch-up.
In examining the data, Binance led with liquidations of $120.58 million, followed closely by Bybit with $103.63 million. In total, these two exchanges combined for 67% of the daily liquidation volume. Platforms like OKX, Gate, and HTX similarly observed significant short liquidations. The rapid price lift in Bitcoin rendered short entry clusters ineffective, emphasizing how bullish momentum can quickly overwhelm bearish positioning. The largest recorded liquidation, a $9.14 million BTC-USDT-SWAP order on OKX, underscored the acute impact of these market movements.
Bitcoin's rise was further fueled by positive external factors, namely a pro-crypto executive order out of Washington and a continued inflow of fund investments, supporting the view that this upward trend was expected. Henrik Andersson, chief investment officer of Apollo Crypto, pointed out that Bitcoin's price adjustment seemed inevitable following a month-long consolidation phase.
Given the current market conditions, analysts suggest that as long as Bitcoin maintains its position above $121,000, the pressure from short liquidations should ease unless new price levels are reached. Investors need to remain cautious, however, as any retracement could shift the burden onto over-eager long positions, demonstrating the delicate balance within the crypto markets.
