Bitcoin Hits $48K While Traders Face $129M in Liquidations

By Aaron Feuerstein February 12, 2024 In Bitcoin, Chainlink, Cryptocurrency
Source: Adobe Stock
  • Glassnode analysts suggest BTC’s entry into a “high-risk” zone, based on on-chain data, may signal the beginning of a bull market.
  • Recent data from Coinglass shows significant market liquidations totaling USD $129m, with short positions suffering most.
  • Liquidation data reveals Bitcoin and Chainlink as notable examples of recent market volatility, with Chainlink experiencing the highest liquidations.

The crypto market is in the green right now and most assets have enjoyed a strong weekend, and Bitcoin is no different, gaining 14% week-on-week. At the time of writing one BTC trades hands for a solid USD $48,519 (AUD $74,384) – the highest it has been in 2 years.

Bitcoin (BTC), since September 2020, source: CoinMarketCap

Analysts Suggest High-Risk Scenario for BTC

Analysts from market platform Glassnode opined that based on on-chain data, BTC has now entered what is called a “high-risk” zone, which could indicate the start of a bull market.

In financial analysis, especially in crypto markets, these indicators are crucial for identifying shifts in market dynamics. The “high-risk” status is often a precursor to a bull market.

Overall, the Glassnode analysis signals a potentially exciting time for long-term investors and the market overall but also underscores the importance of caution and thorough analysis in investment decision-making.


Data Shows Millions in Liquidations

Looking at data from Coinglass, we can see that USD $129m (AUD $198m) have been liquidated with 36,628 traders affected. Short traders by far bore the brunt of these liquidations, with a hefty USD $85.5m (AUD $131.2m) liquidated, compared to USD $43.7m (AUD $67m) in longs.

In investing, “long” means buying assets expecting their value to rise, while “short” involves selling borrowed assets, anticipating a decrease in their value to buy back cheaper later.

Liquidation Heatmap, source: Coinglass

Notably, while Bitcoin liquidations accounted for USD $26.3m (AUD $40.3m) with USD $9.1m (AUD $13.9m) in longs and USD $17.1m (AUD $26.2m) in shorts – investors of blockchain oracle Chainlink’s LINK saw the most liquidations.

In total LINK was liquidated to the tune of USD $28.3m (AUD $43.3m) with only USD $614.6k (AUD $942.2k) in long positions compared with USD $27.6m (AUD $42.3m) in short liquidations.Ethereum (ETH) on the other hand had a smaller amount of USD $17.4m (AUD $26.6m) liquidated, interestingly more long than short positions were affected – with USD $9m (AUD $13.8m) in longs and USD $8.4m (AUD $12.9m) in shorts wiped out.

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

You may also like