$1.2 Billion Liquidated on Binance, Taking the Lead like Always, on Bitcoin’s Drop to Nearly $50k
Binance, which leads in Bitcoin futures volume is accounting for nearly 50% of all the liquidations. The exchange has a default setting of 20x leverage and offers up to 125x, which has been used by 20% of traders in the past.
The price of Bitcoin tumbled to about $50,300 on most of the cryptocurrency exchanges during the latest sell-off.
As of writing, the leading digital currency is trading around $51,500, but it is yet to be known if the market has bottomed or, as we have seen this entire week, BTC would fall further to a new lower level.
Still, there is nothing to be worried about as of yet, as the last two pullbacks were 31% and 26%.
Meanwhile, in the past 24 hours, a whopping $2.44 billion and 328,306 traders have been liquidated, as per Bybt. These liquidations now surpass the level seen on March 14, which sent us to $53,150 the day after hitting the all-time high of nearly $62,000.
Today’s liquidation of both longs ($2.23 billion) and shorts ($190.36 million), however, hasn’t reached the level of Feb. 22nd and is far off from the day before that.
Out of these $2.44 billion liquidated, about $28 million belongs to Bitcoin traders and $3.91 million to Ethereum ETH 0.86% Ethereum / USD ETHUSD $ 3,568.73
$30.690.86% Volume 20.03 b Change $30.69 Open $3,568.73 Circulating 117.55 m Market Cap 419.51 b 1 h $1.5 Trillion Asset Manager Franklin Templeton Eyes Crypto With Latest Filing 2 h AMC Entertainment to Accept Bitcoin, Ether, and other Cryptocurrencies as Payment 3 h Skybridge Capital Announces Intentions For Algorand (ALGO) Crypto ETF . Another whopping $1.18 million and $1.03 million belong to Filecoin FIL -2.14% Filecoin / USD FILUSD $ 83.70
-$1.79-2.14% Volume 1.62 b Change -$1.79 Open $83.70 Circulating 106.98 m Market Cap 8.95 b 1 w Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million 1 mon $162 Billion Asset Manager Files for a Crypto Basket ETF 2 mon Bitcoin Network Can Start Recovering with Hash Rate Dumped 50%, Chinese Miners Already Migrated Overseas and Polkadot DOT -5.25% Polkadot / USD DOTUSD $ 34.64
-$1.82-5.25% Volume 2.3 b Change -$1.82 Open $34.64 Circulating 987.58 m Market Cap 34.21 b 2 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 2 d More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 6 d Osprey Funds Launches Solana (SOL) Trust to Attract Institutional Investors , respectively.
Interestingly, like always, Binance leads in liquidations accounting for nearly 50% of all the liquidations at $1.2 billion, out of which $1.1 billion were longs.
Bitfinex and Deribit traders remain to be level-headed, with their funds accounting for a mere 0.12% and 0.83% of the total exchange liquidation share, respectively.
These liquidations could be in part related to Binance managing $38.16 billion volume in Bitcoin futures in the past 24 hours compared to Bitfinex and Deribit’s $70 million and $2.56 billion, respectively, as per Skew.
Another reason could be the high leverage offered on Binance. While leverage is available up to 125x on crypto perpetual contracts, the default is also 20x.
As we shared before, Binance reported in December 2019 that within its first two months of its futures operations, on average, over 60% of traders use 20x or higher, and 21% of traders use the maximum 125x leverage.
Leverage is extremely popular in crypto and tends to exacerbate Bitcoin’s moves both on the upside and downside. Traders and industry experts have time and again advised people to refrain from using leverage in the crypto space, which already enjoys high volatility.