Tuesday was a great day for bitcoin, and all of crypto markets as gains were commonplace. Bitcoin finally cleared the $20,000 mark, despite indicators pointing towards a slower movement. There have been ripple events resulting from gains in the market. Liquidations are now the order of the day and short traders are getting the ‘short’ end of the stick.
Blockchain Liquidations Exceed $1 Billion
In 2022, the crypto market is now experiencing its worst liquidation trends. Bitcoin’s recovery above $20,000 was swift and the liquidations were just as fast. In the 24 hours since the incident, more than $1 billion has been liquidated in crypto markets.
The worst hit by recovery have been short traders. Coinglass data shows that 87% of liquidations in the last day were from short traders. Short traders are now losing more than $700,000,000 in one day.
FTX, the largest cryptocurrency exchange liquidation of all time with $700 million in liquidation, was also recorded. This means that 74.7 percent of market liquidations were on FTX, with 25% remaining on all exchanges.
24-hour liquidations cross $1.1 billion | Source: Coinglass
Around 156,000 traders were involved in this chaotic trading day. The largest single liquidation was recorded on the Okex – ETH-USDT-SWAP pair for a total of $3.05 million. The total market liquidation amounts are now at $1.12billion at the time we write.
Bitcoin is gearing up for more
Bitcoin is now in the middle of the $20,000s, but it does not appear that the cryptocurrency has yet reached its goal. Its recovery pushed it above its 50 day moving average which confirms the short-term bull trend.
The correlation to the stock market is still high, so bitcoin will likely follow its biggest counterpart. BTC could test the $21,000 mark if there is a continuation of positive sentiment on the financial markets.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
High inflation rates across the world are also triggering investors’ move to bitcoin. Inflation rates are expected to rise in many countries this year. This could be good news for cryptocurrency traders.
BTC currently trades at $20,000.600 at the time this article was written. The market cap currently stands at 396 billion. It has increased 6.98% over the past 24 hours. In the past day, it has seen $61.7 million in trading volume. This is a 136% rise.
Featured image taken from ITPro Today. Chart from TradingView.com
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