Bitcoin BTC
+0.36%
The majority of liquidations were short sales, with $38.4 million liquidated. After Bitcoin briefly fell below $43,000, $24.7 million in long positions were liquidated. Volatility, which has shaken many leveraged positions, is the highest it has been in several weeks for that metric, according to The Block’s data dashboard, which currently puts year-to-date Bitcoin volatility at 51.97%.
As the ongoing Bitcoin rally accelerates, annual Bitcoin volatility has steadily increased from a low of 40% in the first few weeks of December.
price correction
According to YouHodler market director Ruslan Lienkha, the price correction earlier this week was likely due to profit collusion by short-term investors and traders.
Ruslan said Monday’s market volatility may not have been an isolated incident. “There is no deleveraging in sight in the market and crypto traders continue to take high risks. For this reason, volatility could be much higher in the near future,” Lienkha told The Block.
The world’s largest cryptocurrency by market capitalization is up nearly 3% in the last 24 hours. $43,245 12:50 PM ET, according to data from The Block.
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