$1.17bn of Bitcoin longs liquidated – BTC and Ethereum still bullish
$1.17bn in Bitcoin longs liquidated – BTC and Ethereum bullish nonetheless – coincierge
Data provided by ByBt.com shows that this morning the BTC/USD market liquidated $1.17 billion worth of long contracts. The stop losses were Bitcoin Rush triggered when the bitcoin price fell below $30,000 amid a corrective spot market move.
The figures show that long position holders on Binance alone lost $339.37 million, followed by Huobi, whose traders suffered losses worth $258.1 million.
This finally marked the worst one-day liquidation in the bitcoin market since 25 November last year. On that day, long traders had lost about $999.52 million.
None of the recent large long liquidations have yet resulted in a broader downtrend. Spot traders remained bullish on Bitcoin over the long term due to its increasing importance as a hedging asset among mainstream financial institutions and corporations.
After 25 November, for example, the BTC/USD exchange rate climbed as much as 114 per cent to reach a record high of $34,810. Many analysts admitted that institutional investors have recently taken advantage of price drops triggered by retail investors to buy Bitcoin en masse. (Buy Bitcoin with PayPal Guide)
As a result, the flagship cryptocurrency has rallied exponentially after Bitcoin developed concrete supports near $16,200, $17,650, $22,000 and most recently $27,500.
So said a pseudonymous chartist on Monday that the cryptocurrency is moving from weak hands to strong hands – those who prefer to hold their investments for the long term. In turn, the so-called „HODLING“ sentiment comes from a supportive macroeconomic outlook.
People see Bitcoin as a safe haven against falling bond yields and the US dollar. This is also why billionaire investors like Paul Tudor Jones and Stan Druckenmiller have integrated the cryptocurrency into their portfolios. It also explains why MicroStategy, Square, Ruffer Investments, MassMutual and others have chosen to invest in Bitcoin.
Ethereum bullish sentiment
Ethereum surged over the weekend, taking in the $1,000 mark. Several well-known analysts are extremely bullish about the future.
For example, trader Cryptobirb published a tweet today saying that the Ethereum price can rise to $2,000 by March/April 2021.