This bullish price performance has been the downfall of approximately 50,436 traders in the crypto market today. Particularly, according to from Coinglass, this number of traders has seen massive liquidations, bringing the current total liquidations to $145.58 million.
Bitcoin traders felt the brunt of this total liquidation, seeing roughly $46.22 million shared evenly between short and long positions, indicating the asset’s mixed trajectory in the past day alone.
Bitcoin: Bigger Liquidations Incoming
While recent trading activities have triggered millions of dollars in liquidations, further data shows that this scenario could escalate dramatically, turning into billions if Bitcoin continues its ascent towards record highs, breaching a notable mark.
How Long For This Liquidation To Occur?
While the $72,400 price mark might seem like a long stretch from the current market price, BTC might not take that long to get to this mark, given the current fundamentals. For instance, the market might be drawn quicker to this mark as this is where the liquidity lies to fuel its current trend.
Aside from that, no bears are in sight to slow the asset’s rally from getting there in the short term. First of all, the German government has sold off all of its BTC holdings of roughly 49,858 BTC with a current balance below $500, according to from Arkham Intelligence.
However, despite this distribution, BTC’s price is yet to see any notable correction, which suggests two things: that the creditors are not selling, and even if they are, the Bitcoin market is absorbing it real quickly as evident in the slight stabilization of BTC’s price.
These major sell-offs by the German government and Mt. Gox, once considered major threats to the crypto market, now seem to have minimal impact, indicating that no significant bearish obstacles prevent Bitcoin from surging to the $72,400 mark, creating a short squeeze. Featured image created with DALL-E, Chart from TradingView
