Bitcoin, the leading digital asset, took a major hit during the recent massive liquidation The broader cryptocurrency market fell over the weekend. While Bitcoin price fell sharply, losing key support levels, futures open interest also saw notable bearish activity.
An unprecedented shake-up in the Bitcoin derivatives market
The cryptocurrency market is gradually recovering from the recent wave of liquidations, which is considered the largest to date. During the collective liquidation process. Bitcoin derivatives market It witnessed one of the most dramatic tremors in history.
In X mailGlassnode, a financial and on-chain data analysis platform, revealed that its open futures contracts saw the largest single-day wipeout ever. Within hours, billions of dollars of leveraged positions were liquidated, shaking stock exchanges and causing traders to frantically reevaluate their positions.
Data from the on-chain platform shows that more than $11 billion worth of positions were liquidated during the largest liquidation event in cryptocurrency history. Historical flow in Open interest futures contracts It could be a turning point for institutional and individual players negotiating this new phase of market volatility.
Depending on the platform, the size of this reduction indicates how quickly excessive leverage can collapse in times of volatility. This massive survey has sparked renewed debate about market leverage, volatility, and the broader implications for the current situation. Bitcoin price path.
Spot trading volume on BTC and altcoins
Despite the intensity of the liquidation during the week, the market is still indicating bullish potential accordingly Bitcoin spot trading volumes And alternative currencies. Darkfoust, market expert and author, male The intensity of market movement on October 10 may have a positive impact in the medium term.
According to the expert on the chain, a large number of futures positions, leveraged borrowings, and other margin-based bets were destroyed in this avalanche of liquidations. As a result, many investors lost part of their money during this event.
Darkvost highlighted that this is a stark reminder that any leveraged position carries risk, no matter how small the leverage may seem. However, by returning investors’ focus to the spot market, this liquidation event may also have a positive impact on the market.
At present, spot trading volumes are on Alternative currencies Liquidations witnessed a boom in the market, reaching about $20 billion. In addition, Bitcoin spot trading volume has doubled, underscoring the new interest in non-leverage trading.
Looking to the future, Darkfoust anticipates a potentially stronger preference for… Spot market. Such a development would help the cryptocurrency market build a more sustainable and resilient trend instead of leveraged positions that may be wiped out at any time.
At the time of writing, BTC price is trading at $115,165, showing an increase of more than 3% over the past 24 hours. Its trading volume has followed this gradual increase by rising nearly 5% in the past day.
Featured image from Getty Images, chart from Tradingview.com
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