Bitcoin

Bitcoin’s $2000 Flash Crash Resulted in $600m Long Liquidations

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Highlights

    The highest ever liquidations were registered, where-in more than 400K traders liquidated their Bitcoin futures positions

    Interestingly, Binance recorded more than $1 billion bitcoin longs liquidation due to which crypto market experienced another batch of liquidation

    The bitcoin plunge is expected to slow down and recover in the coming hours.

On Wednesday, a sudden Bitcoin “flash crash” made BTC prices drop nearly $2000 in five minutes, promoting a wave of liquidations. The drop from $59350 to $57000 on an otherwise quiet day in crypto markets unexpected.

Long traders were hurt by the flash crash. Long positions worth $600 Million were liquidated during the crash, which lasted just over an hour. The crypto markets lost $1 Billion in the 24hr period leading up to the crash’s end.

Binance took the forefront, as Binance futures is the top derivates exchange in terms of users and volume in the crypto market. However, the largest single liquidation order was $14 Million which took place on Huobi.

Bitcoin's $2000 Flash

However, BTC picked up its pace approximately after 3 hours of the flash crash. It is currently trading at $57905.28.

Will Bitcoin Price surge above $60K ? 

Now, there is a question of whether Bitcoin will rise above $60K in April, and many analysts and traders seem to believe it is possible. However, the road ahead for the next few days is a little hazy.

According to Quant Analyst Plan B’s tweet, the crash helped to eliminate unnecessary leverage in the markets, which may have been beneficial to Bitcoin in the long run.

His tweet read

 “Beautiful stop loss hunting…again”, “now that all leveraged longs have been liquidated, we finally crack the $60K barrier in April,”.

Popular trader Micheal Van De Poppe also tweeted opining that it has become a common occurrence for Bitcoin on short timeframes.

Adding fuel to the sentiment, A report by Finance Magnets says, Bitcoins next ‘points of interest’ will be $73000 and $92000. If the price breaks past its current all-time high of about $61000.

With analyst’s bullish prediction and frequent market volatility, Bitcoin’s price trajectory is going to be interesting to watch out for.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Delma Wilson

Delma is a B2B Content Marketer, Consultant, Blogger in the field of Blockchain, and Cryptocurrency. In her spare time, she loves to blog, play badminton and watch out ted talks. She likes pets and shares her free time with NGO.

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