Bitcoin price briefly fell below $30,000 as derivatives positions worth more than a billion-dollar get liquidated

The price of bitcoin briefly fell below $30,000 from nearly $34,000 within a couple of hours, as derivatives positions worth more than a billion-dollar get force liquidated by crypto exchanges.

About $1.1 billion worth of open interest was liquidated by crypto exchanges in the last one hour, according to tracker Bybt.com. In other words, exchanges liquidated traders' overleveraged positions.

Traders overleverage, or trade on margin, thinking that bitcoin's price would go up and they would benefit more. But when bitcoin's price goes below the liquidation price of their positions, exchanges force liquidate or close their positions because traders are unable to fulfill margin requirements of their leveraged positions.

Source: Bybt.com

Of all the liquidations, most of it occurred on Binance, followed by Huobi and OKEx. While in terms of crypto assets, bitcoin positions formed most of the liquidations, followed by ether (ETH) and litecoin (LTC). Source: Bybt.com

At the time of writing, bitcoin is trading down at around $30,200 and ether down at about $960, according to TradingView.

AUTHOR

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

See More
Connect on

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on