Bitcoin has just suffered a dazzling setback, sending shockwaves through the markets. In just a few hours, the BTC price plunged by 5%, triggering a cascade of liquidations. This correction wiped out more than $192 million in long positions.
A violent correction that shakes the market
The crypto market is experiencing another major shock. Bitcoin, the spearhead of the sector, has fallen sharply by 5% in a matter of hours, causing a wave of liquidations and considerable losses for many investors.
On the Bybit platform, no less than 10,000 BTC in open interest were liquidated, for a total value of $192.90 million.
This correction has not spared other exchanges. Binance, the industry leader, recorded $4.06 million in closed positions over the same period. Faced with this increased volatility, CoinGlass, a specialist in on-chain analysis, has issued a call for caution, encouraging traders to reduce their leverage.
The magnitude of the decline is also reflected in technical indicators. The cumulative volume delta (CVD) shows overwhelming seller dominance, with a dramatic drop to 10,211.
Bitcoin Bearish Sentiment Spreads
The Bitcoin correction had a domino effect on the entire crypto market. Ethereum, the second largest market capitalization, fell by almost 10%. According to data from Lookonchain, a total of 87,405 traders saw their positions liquidated, for a total amount of $318.46 million.
Among the most notable victims of this correction, we find notably a “whale” who lost $12.67 million on a long ETH/BTC position. Another suffered a loss of $12.6 million on Bitcoin.
The slightly negative financing rates (-0.0003) also reflect this general bearish sentiment. In this configuration, it is the short sellers who are remunerating the long positions, a phenomenon characteristic of bear markets.
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