Oh, the drama! Bitcoin has just hit the stratosphere, soaring past $118,000, and with it, the derivatives market is setting all sorts of records. Bitcoin’s Open Interest (OI) is at an all-time high, and guess what? Over $1.25 billion in liquidations in a single day! 🤯
This surge is like a party everyone wants to crash, but it’s also raising some eyebrows. Is this trend sustainable, or are we just setting ourselves up for a massive hangover? 🤔
More Than $1.25 Billion Liquidated, 90% Were Short Positions
According to liquidation data from CoinGlass, the total market liquidations have exceeded $1.25 billion over the past 24 hours. Out of that, a whopping $1.12 billion came from short positions. Bitcoin alone saw over $656 million in liquidations. Talk about a bad day at the office! 😅
“In the past 24 hours, 265,106 traders were liquidated. The total liquidations come in at $1.25 billion,” CoinGlass reported.
It seems traders were betting on a market correction once Bitcoin passed $112,000. But, surprise, surprise, the correction never happened. Oops! 🤦♂️
One clear example is James Wynn, a well-known trader who frequently uses high leverage on Hyperliquid. According to Lookonchain, Wynn’s leveraged short position on BTC was fully liquidated in under 12 hours, and he lost $27,921.63. Talk about a bad hair day! 💇♂️
In addition, Byzantine General, an advisor at Velo, reviewed data from several exchanges and concluded that this might be the biggest short squeeze on Bitcoin in years.
“This is the biggest BTC shorts liquidation event in years,” he said.
More Liquidations May Be Coming as Open Interest Hits ATH
Liquidations could grow even larger in the coming days. Open Interest (OI), which reflects the total value of futures contracts, just reached a new all-time high this July.
Total crypto market OI has now surpassed $177 billion, the highest level on record. Bitcoin’s OI alone has hit $78.6 billion, another record. This shows intense interest from traders in the current market. It’s like a crowded dance floor at a wedding, but with a lot more at stake. 💃🕺
These new highs indicate that the market is in an extremely sensitive phase. High OI shows that many traders are using heavy leverage. Even a small price swing in Bitcoin could trigger massive losses. It’s like walking a tightrope without a net. 🧗♂️
Trader Sentiment Shifts from Short to Long
Market sentiment is also shifting. As BTC price rises, traders are increasingly moving from short positions to long ones, betting that the rally will continue. It’s like everyone’s suddenly decided to be optimists. 🌞
Coinglass liquidation heatmap shows that cumulative long liquidations (shown in red on the left) on major exchanges now outweigh short liquidations (in green on the right). Analyst Joe Consorti warned of risks in this setup.
“Long liquidation leverage now outnumbers short leverage 10:1 in this range. Be careful out there,” Consorti said.
This shift suggests that Bitcoin and altcoins’ recent rally has convinced traders to change their expectations. However, this optimism comes at a cost. A surprise news event or sudden volatility could still trigger major losses. So, keep your seatbelts fastened, folks! 🚗
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2025-07-11 10:51