Crypto Liquidations Hit Highest Levels of 2024; Is this Bullish or Bearish?

• Crypto liquidations exceeded $300 million daily since November 6th as Bitcoin’s price continued to climb
• Long positions accounted for approximately 66% of total liquidations, with Binance leading exchanges at $139.72 million liquidated over the past 24 hours
• These high liquidation levels coincide with Bitcoin’s bull run following the US election results, suggesting traders are using high leverage or low collateral

Bitcoin’s price has continued climbing following the US election results. This bull run has led to mounting leverage and liquidations in crypto markets.

Liquidations exceed $300 million daily since November 6

Over the past 24 hours, with Bitcoin holding between $89,700 and $92,500, $317 million has been liquidated. Long positions lost $210 million, while shorts lost $106 million.

Crypto liquidations have continued to exceed $300 million daily since Nov. 6 as Bitcoin’s price continues to climb. The highest levels were recorded on Nov. 12, when over $800 million was liquidated when Bitcoin reached $87,900.

Data from Coinglass shows that long positions accounted for approximately 66% of total liquidations. Binance led the exchanges with $13,972 million in liquidations over the past 24 hours, followed by OKX and Bybit.

High leverage and low collateral behind liquidations

Despite low volatility (Bitcoin has experienced a maximum 6% price swing within 24 hours since Nov. 6), traders are engaging in leveraged positions that are getting liquidated. The liquidation levels suggest traders are using high leverage or low collateral, leading to losses for both longs and shorts.

These liquidation levels coincide with Bitcoin’s bull run following the US election results. Traders appear to be making leveraged bets on market movements, resulting in liquidations even with minor price fluctuations.

Key Takeaways

• Crypto liquidations have exceeded $300 million daily since November 6 as Bitcoin’s price climbs
• High leverage and low collateral are causing liquidations for both long and short positions
• Traders seem to be betting heavily on Bitcoin’s price movements after the US election outcome
• Liquidations persist despite low volatility, suggesting risky trading behavior

The high liquidation levels reveal the market’s exuberance and eagerness to capitalize on Bitcoin’s post-election surge. However, the data indicates overleveraged positions that can easily get wiped out with sudden price swings.