Mass Carnage: Bitcoin Bulls Face $750m in Liquidations During Latest Selloff
“Almost 800 mil in long liquidations alone. The derivs market has not gotten this rekt since the black swan in March.”
This 2017-style run-up eventually led to highs of $19,500, which is just below its previous all-time highs. It faced an intense influx of selling pressure at this price which sparked the ongoing descent.
1 byproduct of this recent Bitcoin selloff was a massive inflow of long-side liquidations.
Bitcoin and the entire cryptocurrency market have been caught within the throes of an intense uptrend throughout the past few days and weeks.
The selling pressure seen at these highs suggests that significantly further downside could be imminent for the aggregated sector.
Comments made by the U.S. Treasury Secretary regarding a possible crackdown on the market are probably the primary force driving this move lower.
This sort of mass-liquidation event has not been seen in quite some time, as bulls have taken firm control of the cryptocurrency within the past few days and weeks.
The effects of this were compounded by growing fears of a regulatory crackdown on crypto in the U.S., and Bitcoin bulls confronted widespread liquidations.
At the time of writing, Bitcoin is trading down 10% at its current price of $16,900. This marks a notable decline from highs of $19,500 which were set yesterday.
Image Courtesy of Byzantine General.
The buying pressure that the crypto has seen has been unprecedented, with billions of dollars being added to its market cap on a weekly basis.
Published at Thu, 26 Nov 2020 18:00:07 +0000
Featured image from Unsplash.