After Bitcoin (BTC) reached $69,200, on March 5, 2024, breaking all records, the sudden downfall to $59,700 created a severe leverage wipeout, liquidating over $1.1 billion worth of derivatives trading positions across all digital assets through the past 24 hours.
“This move reminds me of the -15% leverage wipeout we had after testing ATHs for the first time in 2020 that Portnoy called “Thanksgiving Day Massacre”. Any dips are for shaking out over leveraged apes and buying at this point. Not doing anything, just sitting on my hands,” Will Clemente, co-founder, Reflexivity Research, tweeted.
Reportedly, the selling pressure of Bitcoin is expected to have sent the cryptocurrency lower. After the CoinDesk Bitcoin Index (XBX) briefly notched an all-time high of $69,208 at 15:04 UTC, BTC collapsed more than $1,000 in a minute. Furthermore, the price first dropped below $65,000, then dropped to $59,700, as per insights from CoinDesk Bitcoin Index.
About $870 million of the liquidated positions were longs, or bets on rising asset prices, as per insights from CoinGlass. This event is expected to bring BTC down by 7% over the past 24 hours, underperforming the broad-market CoinDesk 20 Index’s (CD20) 3% decline. It is believed that altcoin such as Cardano’s (ADA), dogecoin (DOGE) and shiba inu (SHIB) among others lost about 10%-12%.
