Bitcoin has hit a new all-time high, leading to massive short position liquidations on leading exchanges.
Major Exchanges Involved
Major exchanges affected by the liquidations include Binance, HTX, and Bybit. The largest single liquidation occurred on HTX, totaling $51.56 million.
Market Impact
Bitcoin and Ethereum experienced significant losses, with total liquidations for BTC shorts amounting to $469.87 million and $156.492 million for ETH. Large-cap altcoins like XRP and SOL also saw increased liquidations. The rise in institutional buying and leverage use has greatly impacted market dynamics.
Regulatory and Historical Context
No major announcements from regulators such as the SEC have been made following the liquidations. Market speculation suggests U.S. spot BTC ETF inflows may have influenced demand shifts. Historical data reveals that past Bitcoin rallies often lead to high short liquidations and subsequent price corrections.
Liquidations of this magnitude underscore the volatile nature of leverage in crypto trading.
