After weeks of passive trading, the largest market cap crypto, Bitcoin, took a significant leap, putting negative speculators at substantial losses.
According to data from the market tracking platform CoinMarketCap, Bitcoin now trades at $28,442, up from the $26k zone it took forever to overcome.
Given that the crypto arena is a fierce struggle between the bullish and bearish forces, the sudden ascent of Bitcoin’s price above $28,000 has placed numerous traders in a dire position.
Bitcoin Liquidations
Specifically, market statistics from Coinglass, a prominent tracker of derivative contracts, indicated that Bitcoin worth over $51.3 million was lost in the past day amid Bitcoin’s $28k shot.
Notably, the market participants betting on the prices of digital assets crashing, otherwise called shorters, faced the lion’s share of the market losses. The largest single-order liquidation on Bitcoin was worth $8.39 million on the Huobi exchange.
Interestingly, Coinglass data suggested that 97% of derivative traders on Huobi are at a loss as their overwhelming majority bet against the price of Bitcoin. In figures it implies Bitcoin shorters lost $17.25 as against $472.99 lost from the other side.
Bitcoin liquidation exchanges | Coinglass
Similarly, 84.37% of the futures traders on the largest exchange, Binance, incurred losses, with $10.72 million evaporating.
On a broader scale, Coingalss data reveal that 29,282 traders have lost over $119 million in the last 24 hours. Emphatically, traders who envisaged a broader market decline took the most significant hit.
In particular, shorters have liquidated more than $90 million in their crypto investment. In contrast, traders who bet on the positive side of the market lost only $28 million.
Meanwhile, these significant losses on the sides of Bitcoin shorters coincide with BTC’s positioning for the fourth quarter. Experts have argued that Q4 has historically been the period in which Bitcoin pulls its best performance of the year.
Historically, October + November are the best performing months for #Bitcoin. pic.twitter.com/JvNKqrZFlZ
— Miles Deutscher (@milesdeutscher) October 1, 2023
Bitcoin Market Dominance
Besides, Benjamin Cowen, the founder of ITC_Crypto, spotlighted that Bitcoin’s dominance had backtested the breakout point at around 49%.
In other words, the prominent analyst argued Bitcoin’s supremacy rating in the market recently tested and held a significant level at approximately 49%. He noted the dominance has been steadily increasing over the past six weeks, which may suggest a strengthening position for Bitcoin in the overall market.
