The crypto market has recently undergone a wave of liquidations totaling nearly $300 million, closely following Bitcoin’s strong recovery from the $67,000 mark.
This increase in The value of Bitcoina complete reversal of its previous downward trend, caught many traders off guard, especially those who bet on the market’s continued decline.
More than 80,000 traders face liquidation
O data provided by Coinglass sheds light on the magnitude of the liquidations, revealing that approximately 86,047 traders suffered losses in excess of $250 million in just a 24-hour period.
Major exchanges like Binance, OKX, Bybit, and Huobi were the scenes of these significant financial setbacks, with Binance traders bearing the brunt of the liquidations.
Particularly, Binance recorded $128.7 million in settlements, while other major platforms such as OKX, Bybit, and Huobi also suffered significant liquidations, worth $99.87 million, $33.18 million, and $17.70 million, respectively. However, despite also facing liquidations, smaller exchanges had a comparatively smaller impact.
The most affected positions were short trades, reflecting widespread anticipation of a market downturn that did not materialize as expected. Short positions recorded around 57.55% of liquidations, equivalent to US$164.10 million, from traders who bet against the market.
On the other hand, long position holders also faced their share of losses, contributing to almost 40% of total liquidations, totaling US$121.07 million.
Bitcoin recovery and future prospects
Bitcoin’s strong recovery, momentarily recovering highs above $67,000, has reignited interest in its market behavior and future trajectory.
Despite a 6.6% drop in its market capitalization last week, Bitcoin’s value has seen a notable increase of 6% in the last 24 hours, with its market cap currently above $140 billion. This resurgence in trading activity, with daily volumes rising from less than US$60 billion to levels above this mark, signifies renewed investor confidence and greater commercial interest.
Adding to the discourse, cryptocurrency analyst Willy Woo presents a bullish outlook for Bitcoin, suggesting that the possibility of a “double pump” cycle Reminiscent of market patterns observed in 2013.
According to Woo, this pattern could herald two significant increases in Bitcoin prices in the coming years, with the first peak expected in mid-2024 and a subsequent, more substantial increase in 2025.
While these double-surge scenarios are rare, Woo’s analysis, based on current market conditions and Bitcoin’s growth potential, offers a glimpse into the future of the world’s leading cryptocurrency.
The rate #Bitcoin The Macro Index is pumping, I wouldn’t be surprised if we get a top in mid-2024, which would suggest a double pump cycle like in 2013… a second top in 2025. pic.twitter.com/i2a0V5ytPv
– Willy Woo (@woonomic) March 19, 2024
Featured image from Unsplash, chart from TradingView
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