In a surprising turn of events, Bitcoin’s price has leaped significantly, leaving many traders who bet against it in a dire position. After weeks of consolidation, Bitcoin has surged to $28,442, up from its prolonged stretch in the $26,000 range.
This sudden ascent has left “shorter sellers” with losses as the fierce struggle between bulls and bears continues.
Bitcoin Liquidations Hit $51.3 Million
Market statistics from Coinglass, a prominent tracker of derivative contracts, reveal that Bitcoin liquidations were worth over $51.3 million. These liquidations occurred on Oct 2 during Bitcoin’s rapid climb to $28,000.
Short sellers, who were betting on the prices of digital assets crashing, bore the brunt of these losses. Notably, the largest single-order liquidation on Bitcoin amounted to a staggering $8.39 million and occurred on the Huobi exchange.
What’s particularly interesting is that Coinglass data suggests that a whopping 97% of derivative traders on Huobi are currently at a loss. Bitcoin short sellers collectively lost $17.25 million, while those betting on the cryptocurrency’s rise lost a relatively modest $472.99k.
The losses weren’t limited to just one exchange. On Binance, the largest cryptocurrency exchange by trading volume, 84.37% of futures traders incurred losses totaling $10.19 million. This widespread trend of traders’ losses highlights the volatile crypto market.
In a broader context, Coinglass data reveals that 29,282 traders lost over $119 million in the last 24 hours. Those who anticipated a broader market decline took the most significant hit. Short sellers have generally liquidated over $90 million in their crypto investments.
In stark contrast, traders who bet on the positive side of the market lost only $28 million. This underscores the risks involved in shorting cryptocurrencies, as Bitcoin’s price can surge unexpectedly, causing losses for those who bet against it.
Bitcoin’s Q4 Performance and Market Dominance
As Bitcoin positions itself for the fourth quarter, many are optimistic. Experts have pointed out that historically, Q4 has been the period in which Bitcoin delivers its best performance of the year.
This historical pattern could contribute to the recent surge in Bitcoin’s price, catching many traders off guard.
Furthermore, Benjamin Cowen, the founder of ITC_Crypto, has highlighted that Bitcoin’s dominance in the overall cryptocurrency market has tested the breakout point of 49%.
This means that Bitcoin’s supremacy rating in the market recently tested and held a significant level at about 49%.
Cowen noted that Bitcoin’s dominance has increased over the past six weeks, suggesting a strengthening position for Bitcoin. Also, the fluctuations in the price of Bitcoin often signal the overall direction of the cryptocurrency market.
If Bitcoin experiences a negative trend, it could trigger a broader market decline. This trend could affect altcoins with smaller market values even more severely.
Although September has typically been a positive month for cryptocurrencies, the unusual events of 2023 suggest a very cautious approach to October’s market expectation.
The fact that September did not exhibit a bearish trend raises questions about the probability of a bullish October. Nonetheless, while historical trends can provide some guidance, it’s important to remember that they don’t guarantee future outcomes.
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