Bitcoin Soars Past $64,000: Liquidations Surge as Bears Get Burned
Bitcoin’s Unexpected Rally Triggers $182 Million in Liquidations
The cryptocurrency market experienced a dramatic shift as Bitcoin’s price surged past $64,000, wiping out over $182 million in positions across various exchanges. This unexpected rally caught short sellers off guard, leading to significant liquidations.
Data from Coinglass reveals that a majority of the liquidations were short positions, indicating that traders who bet on a price decline were forced to cover their positions, further fueling the upward momentum. The sudden price jump, fueled by a 7.7% increase in four days from a low of $59,400, sent shockwaves through the crypto market.
Bitcoin Breaks Above $64,000
In the early hours of Monday, October 14, Bitcoin surged past $64,000, breaking above a tight range over the weekend and registering a 2.53% gain in the past 24 hours. The cryptocurrency reached a peak of $64,500, marking its highest point in October. This positive price action has reversed the monthly trend, with October’s monthly return now showing a positive gain for the first time.
Liquidation Pain for Short Sellers
While the surge has been positive for Bitcoin holders, it has been costly for short sellers. Data shows that over $182 million worth of positions were liquidated, with $115.76 million coming from short positions and $66.28 million from long positions.
Binance led the charge in liquidations, accounting for 42.48% of the total. On Binance alone, approximately $77.33 million worth of positions were wiped out, with short positions accounting for 54.23%. OKX followed closely, with $58.71 million in liquidations, where 62.84% were short positions.
HTX, Bybit, and CoinEx also witnessed significant liquidations. HTX recorded $27.35 million in liquidations, with a staggering 87.81% coming from short positions. Bybit followed with $12.62 million in liquidations, with a short rate of 65.92%, while CoinEx rounded out the list with $3.50 million liquidated, 81.34% of which was from shorts.
More Liquidations Ahead?
Bitcoin’s recent surge has reignited the possibility of a bullish October sentiment. This unexpected rally could set the stage for a continued rise in the second half of October.
If this rally continues, we may see further liquidations of short positions. Bears who have bet against Bitcoin’s rise may rush to close their positions to minimize losses. This decrease in selling pressure could further fuel Bitcoin’s ascent, potentially leading to even higher price levels.