Bitcoin (BTC) has hit an all-time high, liquidating about 74,000 trader short positions in the crypto market. A BitMEX trader has suffered a $ 10m loss on cryptocurrency platform BitMEX, as he added $ 3k to the price of Bitcoin in a single day.
Bitcoin price rises, short positions in red
According to Bybt data, the total liquidity of crypto derivatives in the last 24 hours exceeds $ 1 billion, of which about 98.1% comes from the liquidity of short positions.
Bitcoin’s rise above the $ 20k milestone triggered traders who opened short positions, waiting for a possible pullback, to delete positions.
According to beincrypto, Bitcoin was repeatedly rejected at the price level of $ 19,450 before it hit a new peak. This price move probably caused sellers who opened short positions to expect a downward trend, and traders interpreted their attempts to pass $ 19,500 as a lack of support at this price level.
With $ 427.91 million in shorts, Binance was the platform on which those positions evaporated the most. In total, short positions worth about $ 865 million were liquidated amid BTC’s progress.
Open position and option volume witness new records
Market sentiment is overwhelmingly bullish, with the open position currently at a high of about $ 8.1 billion. According to Skew data, OKEx and Binance are the platforms with the highest transactions, with open positions of $ 1.47 billion and $ 1.40 billion respectively.
At the time of writing, Bitcoin is trading at $ 22,735, up 14.7% over the past 24 hours.
But, according to the news source, a record open position during a period of extreme uptrend may signal a reversal of trend, with BTC seeing a possible pullback while making profits in the spot market, at least in the short term.
Data from skew shows that BTC options trading volume reached a new milestone, surpassing $ 1 billion for the first time on December 16. BTC options giant Deribit accounts for much of that success, contributing $ 879 billion to trading volume.