Bitcoin Traders Face Liquidations as BTC Surpasses $60,000

Bitcoin Traders Feel the Pinch as Open Interest Plunges

A recent post by CryptoQuant’s Head of Research, Julio Moreno, sheds light on the current state of Bitcoin’s Open Interest. This metric monitors the total number of derivatives positions linked to BTC across various exchanges.

Increasing Open Interest signifies a surge in investors opening new market positions, potentially leading to heightened price volatility due to increased leverage. Conversely, a decrease indicates traders closing or being liquidated from their positions, resulting in more stable prices.

Bitcoin Traders Face Liquidations As Btc Surpasses $60,000

Recent data shows a significant drop in Bitcoin’s Open Interest following a recent price crash, mainly driven by a surge in long liquidations. Conversely, a subsequent price rally led to substantial short liquidations, causing another drastic drop in Open Interest.

The latest Bitcoin short squeeze resulted in over $94 million in liquidations within a day, with shorts accounting for $137 million of the $212 million total liquidations in the cryptocurrency derivatives market.

Bitcoin Price Movement

Currently trading around $60,300, Bitcoin has experienced an 8% decline over the past week.

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