Bitcoin Breaks $28K Barrier: 29,282 Traders Liquidated

Last Updated October 3rd 2023
3 Min Read

Key Takeaways -

  • If you're shorting Bitcoin, consider revising your approach due to its recent surge.
  • Bitcoin's strong historical performance in Q4 suggests more positive trends may be ahead.
  • Bitcoin's rising market share indicates a strengthening position in the cryptocurrency market.

Bitcoin, the cryptocurrency with the largest market capitalization, recently broke free from its stagnation around the $26,000 mark. It soared to a new high of $28,442. This abrupt rise has left traders who were shorting Bitcoin—betting on its price to fall—in a precarious situation.

Unpacking the Numbers

Unpacking the Numbers

According to the latest data from CoinMarketCap, Bitcoin's new price has reached an astounding $28,442. This is a significant and noteworthy leap from its previous stagnation, which was hovering around the $26,000 mark. This unexpected surge has exerted immense pressure on traders who were pessimistically betting against Bitcoin's upward trajectory.

The High Price of Betting Low

Insightful data from Coinglass, a platform that specializes in tracking derivative contracts, unveils that Bitcoin, valued at over $51.3 million, vanished into thin air in a mere 24-hour period due to this remarkable price hike. The most jaw-dropping single liquidation occurred on the Huobi exchange, amounting to a staggering $8.39 million.

A Breakdown of Losses

On the Huobi exchange, an overwhelming 97% of traders find themselves at a loss, with the average loss per trader being $17.25. Meanwhile, on Binance, another significant cryptocurrency exchange, 84.37% of traders have incurred losses, with the total sum reaching $10.72 million. Cumulatively, a staggering 29,282 traders have lost an excess of $119 million in just the past 24 hours.

The Timing & Market Dominance

This financial turmoil perfectly aligns with Bitcoin's strong positioning for the upcoming fourth quarter, a period that has historically been quite favorable for Bitcoin's performance. Adding to this, Benjamin Cowen, the founder of ITC_Crypto, has emphasized that Bitcoin's market dominance is progressively on the rise. It is currently testing a pivotal and significant level at approximately 49%.

What Does This Mean for You?

If you're currently shorting Bitcoin, now might be the opportune moment to reassess and possibly overhaul your trading strategy. Bitcoin's robust performance in the fourth quarter could very well be a harbinger of more positive trends to come. Additionally, the rising market dominance of Bitcoin could indicate a strengthening and more stable position for Bitcoin in the overall cryptocurrency market.

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