Bitcoin price decline prompts traders to liquidate over $250m
The crypto market has witnessed liquidations surpassing $250 million in the past 24 hours, as reported by Coinglass. The current volume of liquidations stands at $252.5 million, with a majority of forced closed positions occurring in Bitcoin (BTC) and Ethereum (ETH).
Bitcoin’s price dropped below $41,000, resulting in losses of $81.1 million for traders. Similarly, traders who had opened long positions in Ethereum suffered significant losses as the price of the second largest cryptocurrency by market capitalization dropped to $2,400, costing them $32 million.
The major share of liquidations, over 90%, was distributed among OKX, Bybit, Huobi, and Binance. Binance executed the largest order, closing a long position in BTCUSDT for $7.31 million.
At the time of writing, the rate of Bitcoin stood at $41,200. Coinglass data revealed that traders had opened more long positions than short ones in the last few hours, indicating their confidence in the further growth of BTC.
The decline in the market has been attributed to the active sale of BTC by asset managers Grayscale. Grayscale’s Bitcoin Trust (GBTC) experienced significant outflows totaling $594 million due to the current downturn in the cryptocurrency market. Additionally, Grayscale transferred 9,840 BTC worth $418 million to Coinbase Prime, bringing the total volume to 41,478 BTC since January 12.
For more information, read: Analysts predict a major Bitcoin supply shock before the halving.
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