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In the last 24 hours, the price of Bitcoin experienced a significant increase, resulting in the liquidation of trading positions worth more than $68 million. This data is provided by CoinGlass, a platform that monitors cryptocurrency trading activity. Liquidation of trading positions refers to the forced closing of these positions by exchanges or platforms due to lack of sufficient margin or collateral to cover potential losses.
Out of the total liquidated amount, the value of liquidated short-term transactions was more than 51.4 million. In order to decrease. Additionally, around $13 million was attributed to Ethereum short trades, indicating similar expectations for Ethereum price declines.
Additionally, according to data from Glassnode, another data analytics platform, there is approximately 500 million liquidity leverages in Bitcoin’s current price range, which is between $38,300 and $39,000. Liquidity leverage refers to the use of borrowed or leveraged funds by traders to engage in trading activities. This data shows that traders used a significant amount of borrowed funds to trade in this price range.
The combination of high liquidity value and significant liquidity leverage shows the impact of Bitcoin’s price increase on the market. This indicates that traders have taken significant positions and used borrowed funds to trade within this range. This situation can increase market volatility as a liquidation may cause further price movement and potentially affect other related markets.
Overall, these numbers provide insight into the market dynamics surrounding Bitcoin’s rising price. It highlights the involvement of leveraged positions and emphasizes the potential risks and consequences associated with trading with borrowed funds.
