$57 Million of Bitcoin Longs Liquidated by BitMEX

News / 10.02.2020

Bitcoin prices have declined from the $10k mark to just about $9.8k, leading to severe liquidations of BTC longs at the BitMex platform, amounting to $57.8 million. 

The possible reason for the declining price is the fast rise of the number of BTC futures open interests and contracts surpassing $1 billion but hitting more than $1.5 billion. This fast-rising led to a hike in the number of aggregated open interest in the top crypto exchanges like Bitmex to over $4 billion. 

Recently BTC price hit the over 10k, leading to falling back at spot rates of BTC The $10k mark is not only a psychological level, but it also is a critical hurdle level. Due to the current continuous uptrend, the prices will have to close above this $10k mark. 

The buyers’ hope has dropped due to the short term downside correction in the previous hour. More so, increasing liquidations suggest that buyers position staking with anticipations of higher prices in 2020. 

Around $57.8 million worth of BTC liquidated but using the 25X leverage assumption; then there is high stochasticity that liquidated BTC’s actual value is $2.2 million. Currently, Bitmex only supports maximum leverage of 100X, with the highest leading to bigger profits. 

A small price movement in BTC is needed for the occurrence of a shakeout, and that’s probably why the $300 decline caused a $57.8 million liquidation, leading to a great surge in the Bitmex Insurance fund. This fund saw a 62% growth last year due to shakeouts and forced liquidations that occurred. 

When writing this report, the XBT balance was standing at 34,125.3274.

avatar
Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.