Extreme leverage drove $500 million worth of BTC liquidations in one hour


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The Bitcoin markets emphatically rejected the $60,000 price range on March 15, with extreme leverage driving a report $500 million value of lengthy liquidations over simply 60 minutes.

Glassnode’s founders, Jan & Yann, emphasised the brand new report hourly Bitcoin for liquidations, noting that greater than half open futures contracts previous to the margin calls had been leveraged by not less than 20 instances.

Nonetheless, data from Bybt suggests $800 million value of liquidations had been processed over simply quarter-hour.

In response to crypto market knowledge aggregator, Datamish, the previous 24 hours noticed 292 positions liquidated for $94.5 million on derivatives alternate, BitMEX. On Bitfinex, 488 positions had been liquidated for roughly $100 million over the identical interval.

The second largest single-day liquidation got here on Feb. 22, when BTC fell from its then all-time excessive of $58,300 to round $47,000. As reported by Cointelegraph, $5.9 billion worth of futures contracts were liquidated through the crash. 

Since its March 14 peak of $61,000, Bitcoin has corrected by 12.3% to $53,500 throughout Asian buying and selling on Tuesday, March 16. BTC has since produced a slight restoration, final altering palms for $54,600 as of this writing.

This newest correction is the third main retracement of the present bull cycle.

Whereas the Bitcoin Fear and Greed Index recommended the markets had been in a state of “excessive greed” final week, the retracement has seen the indicator fall again into the “greed” class with a rank of 71 — indicating a big cooling of market sentiment.