What’s Next for Crypto After this Biggest Crypto Bloodbath?
Key Highlights:- Over 132,000 traders liquidated, with $99 million from Bitcoin long positions.- Binance's largest liquidation involved an $18.48 million ETH/USDT order.- Derivatives traders remain optimistic about Ether, anticipating a rebound with potential ETF approval.
**Market Overview:
On Wednesday, the cryptocurrency market saw a dramatic rise in liquidations due to Bitcoin's sharp price drop below $60,000. Over the past 24 hours, 132,091 traders faced liquidations totaling $374.81 million.
**Bitcoin’s Decline:**
Bitcoin experienced intense selling pressure, dropping below $60,000 to a recent low of around $57,110. This led to $99.37 million in liquidations from long positions alone across centralized exchanges, out of a total $113.75 million in BTC liquidations. The largest single liquidation was on Binance, involving an ETH/USDT order worth $18.48 million.
**Ether and Other Cryptocurrencies:**
Ether (ETH) also saw significant liquidations, with $97.55 million liquidated, including $89.77 million in long positions. Liquidations occur when a trader’s position is closed automatically due to insufficient funds, often due to market volatility impacting their initial margin or collateral.
**Optimism Among Derivatives Traders:**
Despite the downturn, derivatives traders are optimistic, especially for Ether. Analysts from QCP Capital noted bullish sentiment in the options market, with a strong focus on Ether calls for September and December expirations. The anticipated approval of spot Ethereum ETFs could trigger a significant rebound in Ether prices.
Conversely, Bitcoin miners are showing signs of capitulation, historically a sign of price bottoms. Recent data indicates that miners have faced substantial pressure, with daily revenues dropping from $79 million in March to $29 million.
