The biggest recent recent Bitcoin (BTC) collapse in history has charged victims: leveraged trailers. These investors lost a ton of money in the cryptocurrency bearish move.
According to Coinglass data, traders have recorded close to US$500 million in the last 24 hours. Adjustments occurred after the decoration of BTC price, This has now gone from a new historic maximum of USD 124,400 to the current US$118,800.
At the time of this publication, the cryptocurrency pricing calculator indicates that BTC is trading at $118,907.
Despite the magnitude of the nominal movement, the fall represents a 4.5% correction, maintaining the upward trend for Bitcoin. However, for traders with leveraged positions, set-offs implied immediate losses.
The Coinglass chart collects data added from not only the main exchange Bitcoin, but also all cryptocurrencies, Much of the settlement was concentrated in a long position. This means that operators “betting” price increases have automatically been closed because they are unable to cover the guarantees that the platform needs.
Liquidation is a habitual mechanism in the market with high leverage and high volatility. If the price moves quickly in the opposite direction of the trader’s “bet”, the exchange will perform the sale or purchase required to close the position, avoiding greater losses on the platform.
On this occasion, Bitcoin’s rebound to its previous historic biggest took advantage of the upward trend to encourage the opening of a long position with high leverage. But on the downward turn, there were people hoping for a new immediate impulse. The result was a village covered in a chain that affects both Bitcoin and other markets.
