Traders lost $1 billion due to the rise of Bitcoin to $100,000

On May eighth, the price of bitcoin BTCUSD rose above $100,000 for the first time in several months. This led to significant fluctuations in the crypto market.

We explain how the rise of Bitcoin to a multi-month high has affected traders.

Record Liquidations

According to CoinGlass, 190,000 traders were liquidated in the last 24 hours. Total losses approached $970 million. The largest losses were incurred by market participants with short positions — they lost $836 million. This liquidation was the largest since 2021. According to analysts, the actual figures of damage may be even higher.

“This is the largest short position liquidation since 2021… Binance has not fully disclosed its liquidation data, so the actual figures may be significantly higher,” CoinGlass stated in its report.

Meanwhile, the number of long positions has sharply increased. As a result, traders are facing a new risk: mass liquidations of “longs” could provoke a sharp correction in Bitcoin. According to CoinGlass, if BTC drops below $100,000, long positions worth more than $2 billion could be closed on cryptocurrency exchanges.

If the price of Bitcoin falls below $98,000, the total liquidation volume will reach $3.45 billion. This indicates a change in sentiment among traders. Many of them are betting on the continued rise of BTC, using high leverage. This is indicated by the open interest indicator (OI) for Bitcoin futures, which reached a record $67.4 billion. Each time the OI exceeded the $65 billion mark, a correction followed.

Many experts share their opinions regarding the further dynamics of Bitcoin. Some believe that BTC will continue to rise. According to Standard Chartered’s forecast, the value of the cryptocurrency will reach $120,000 by the end of the second quarter. Read more about what participants in the crypto community think about the future of the asset in our special article.

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