The fall in the price of Bitcoin (BTC) below $67,000 cost traders $680 million. The total amount of liquidations on the crypto market over the past 24 hours exceeded $680 million. Most of the forced closed positions were in BTC and ETH.
Bitcoin BTC Drop from Record Highs
A sharp collapse in the price of BTC after another update to the historical maximum and the subsequent rebound cost traders $242 million. Market participants who opened positions in Ethereum (ETH) also suffered significant losses – the fall in the rate of the second-largest cryptocurrency by capitalization to $3,600 cost them more than $116 million
The leaders in liquidations among altcoins were SOL, DOGE, SHIB, PEPE, and several other tokens. More than 90% of liquidations were distributed between OKX, Bybit, Binance and Bitmex. The largest order was executed by OKX – the exchange closed the BTCUSD position for $13.3 million.
What’s Happening to Bitcoin’s Price?
This week, the price of BTC once again updated its all-time high, rising above $73,000. However, last night the asset went into a correction, during which the Bitcoin rate dropped below $67,000.
However, data from Coinglass suggests that in the past few hours, traders have begun to open long positions again in hopes of continued growth in the price of the main cryptocurrency.
How the Expiration of $2.09 Billion Options will Affect the Price of Bitcoin (BTC)
A large number of Bitcoin (BTC) and Ethereum (ETH) options are expiring today. Let’s figure out how this will affect the price of underlying assets. Cryptocurrency options are derivative contracts that allow traders to buy or sell an asset at a specific price on a specific expiration date. If the option owner decides not to buy or sell cryptocurrency, he is not obligated to do so. This makes options more flexible than futures, which require you to close a position regardless of profit or loss.
The notional value of the soon-expiring 30,613 BTC contracts and 331,907 ETH contracts is $2.09 billion and $1.239 billion, respectively. We are looking into whether expiration can provoke increased volatility in the market and affect the price of the two largest cryptocurrencies by capitalization.
What will Happen to the Price of BTC and ETH?
Tonight, the price of Bitcoin briefly dropped below $67,000, but is already regaining its position – at the time of writing, the asset is trading at $68,300. On the other hand, Ethereum showed similar dynamics, immediately falling to $3,600. It is quite difficult to predict how the market will behave on the expiration day of a large number of contracts, especially if any events are added that affect the news background. However, traders need to closely monitor the situation to ensure that increased volatility does not lead to unwanted stop loss orders or poor trading decisions.
