The cryptocurrency market experienced a sharp increase in liquidations on Wednesday, triggered by Bitcoin's significant price drop below the $60,000 mark. In the past 24 hours, a total of 132,091 traders were liquidated, resulting in total losses amounting to $374.81 million.
Bitcoin's Sharp Decline
Bitcoin, the flagship cryptocurrency, faced intense selling pressure, plummeting below $60,000 and hitting a recent low of around $57,110. The market witnessed over $99.37 million in liquidations from long positions alone across centralized exchanges, out of a total of $113.75 million liquidated in BTC positions.
However, the largest single liquidation order occurred on Binance, involving an ETH/USDT value of $18.48 million as per the coinglass report.
Ether and Other Cryptocurrencies
Ether (ETH), the second-largest cryptocurrency, also faced substantial liquidations, with over $97.55 million liquidated, including $89.77 million in long positions.
Liquidations happen when a trader's position is automatically closed due to insufficient funds to maintain it, typically caused by market fluctuations that erode their initial margin or collateral.
Derivatives Traders Remain Optimistic
Despite recent market downturns, derivatives traders maintain optimism, particularly for Ether. Analysts from QCP Capital noted a bullish sentiment in the options market, with a strong focus on Ether calls for September and December expirations.
Moreover, the anticipated approval of spot Ethereum exchange-traded fund (ETF) S-1 forms could trigger a significant rebound in Ether prices.
On the flip side, Bitcoin miners are showing signs of capitulation, historically indicative of price bottoms. Recent data suggests miners have been under significant pressure, with daily revenues dropping drastically from $79 million in March to $29 million.