190,000 traders liquidated in the cryptocurrency market overnight

Over the past 24 hours, the cryptocurrency market has experienced significant fluctuations as bitcoin has officially surpassed the $ 100,000 mark. This price increase caused massive liquidations of trading positions totaling about $ 970 million, mostly from short positions. According to CoinGlass, this is the largest wave of liquidations since 2021.

Among those liquidated are about 190,000 traders. Most of the losses were incurred by those who bet on bitcoin’s decline: short positions amounted to $ 836 million. However, CoinGlass notes that the actual volume may be even higher, as not all exchanges, including Binance, fully disclose their liquidation data.

However, the sharp rise in bitcoin creates new risks, this time for those who have opened long positions. If the price falls below $ 100,000, it could lead to a «long squeeze» — a phenomenon where mass liquidation of long positions provokes panic selling and a rapid price decline. At levels below $ 98,000, the volume of potential liquidations could reach $ 3.45 billion.

At the same time, open interest in bitcoin futures reached a record $ 67.4 billion, indicating increased demand for short-term leveraged trading. Historically, every time this figure exceeded $ 65 billion, the market faced a correction.

Amid rising prices, bitcoin temporarily overtook Amazon in terms of market capitalization, reaching $ 2.05 trillion. Standard Chartered analysts predict further price growth to $ 120,000 in the second quarter. All of this is evidence of the growing role of bitcoin in the global financial system.