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Bitcoin (BTC) demonstrated strength, propelling the asset above the crucial $30,000 threshold for the first time since June 2022, resulting in significant losses for traders who were betting on a decline.

Within the past 24 hours, over 87% of all liquidated futures trades were short positions, which bet against a rise in prices. The losses incurred from these trades reached approximately $145 million. Among the affected cryptocurrency exchanges, Huobi experienced over $45 million in liquidations on its platform, while Binance and OKX each saw $35 million in liquidations.

The most significant liquidation order to date occurred on Huobi, involving a Bitcoin/Tether trade worth $11 million.

Liquidation occurs when an exchange forcibly closes a leveraged position held by a trader due to the trader's partial or total loss of their initial margin. This happens when the trader is unable to maintain the necessary margin requirements for the leveraged position, meaning they do not have sufficient funds to keep the trade open.

Significant liquidations can serve as an indication of the potential local high or low point in a rapid price movement, enabling traders to adjust their positions accordingly.

Some people speculate that the recent surge in Bitcoin's value could be due to deteriorating economic conditions, leading investors to seek out decentralized assets as a potential alternative.

“Bitcoin has effectively decoupled from the traditional markets since the start of the year, up over 80% while stocks have slumped,” said Alex Adelman, CEO of bitcoin rewards app Lolli, in an email to CoinDesk. “Bitcoin’s strength compared to the traditional markets shows that investors are increasingly shifting their capital into bitcoin, choosing it instead of traditional investments to build their wealth.”

“The fact that today’s rally did not have a clear catalyst is a bellwether of bitcoin’s newly bullish market conditions and strong investor confidence. Bitcoin’s ongoing strength suggests that bitcoin is emerging from the so-called ‘crypto winter’ into a new phase of strength and renewed interest from retail and institutional investors,” Adelman added.

Source Coindesk