Traders with too much leverage become victims of volatility again. $ 190 million was liquidated in minutes.
Bitcoin ( BTC ) slumped to $ 27,700 and rebounded seconds later, shocking some and financial ruin for others, data shows.
According to the on-chain analysis website Glassnode futures traders with long positions have a total of US $ 190 million alone on Binance in just one hour lost – more than ever before.
An exchange, 60 minutes, $ 190 million
These numbers underscore the current behavior of Bitcoin, which is orbiting new all-time highs and, along with ether ( ETH ), is considered the hottest asset of 2021 .
Long positions had seen almost unbridled growth for most of December into the new year. The upward movement met with little resistance.
Despite warnings from various analysts that the bull market could not last forever, many traders took a high risk and bet on further new highs. In this case, $ 34,800 was a definite spike. Then, within 24 hours, the BTC / USD pair dropped to $ 7,000. It even fell by $ 4,000 in an hour .
The result for those who had too much leverage was clear to see.
„190,000,000 US dollars (in long positions) were liquidated on #Binance within 10 minutes. Largest value so far,“ as Glassnode commented on a graph showing the Binance liquidations.
Risk versus reward
As Cointelegraph reported , short positions were liquidated en masse in the past week when Bitcoin broke the $ 30,000 mark for the first time. As a result, short sellers lost a total of $ 100 million on all exchanges.
„Get used to declines of $ 5,000 when we get into $ 100,000. That comes with the range,“ said Samson Mow, strategy director at Bitcoin technology firm Blockstream, summarizing on Twitter.
Trading in derivatives, which are linked to Bitcoin and Ether, continues to be extremely popular. The CME Group, one of the pioneers in Bitcoin futures, will introduce Ether futures in the first quarter of this year .