BTC crossed the $41,000 mark early Monday, extending year-to-date gains to over 152%.
Click here to read CoinDesk's Most Influential list for 2023, a series of 50 profiles of key people, companies and trends in crypto.
Data from CoinGlass show, exchanges have liquidated crypto perpetual futures positions worth $220 million over the weekend. Bullish longs accounted for nearly 85% of the tally.
Over $120 million worth of bitcoin shorts, referring to bets against price rises, have been liquidated since Friday. Elsewhere, open interest grew 6% on Monday as traders increased leveraged positions to bet on further volatility.
Meanwhile, analysts at Coinanlyze told CoinDesk in an X message that open interest on the exchange BitMEX spiked 90% within hours to $420 million from over $200 million on Saturday – indicating a large player had opened massive bets on the platform.
Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. It happens when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open).
Large liquidations can signal the local top or bottom of a steep price move, which may allow traders to position themselves accordingly.
Such data is beneficial for traders as it serves as a signal of leverage being effectively washed out from popular futures products – acting as a short-term indication of a decline in price volatility.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.