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$165M ‘Long Position BTC’ Liquidated; A Give Up or Hang On?

Published 05/06/2022, 02:15 PM
Updated 05/06/2022, 02:30 PM
© Reuters.  $165M ‘Long Position BTC’ Liquidated; A Give Up or Hang On?
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    • Bitcoin price fall resulted in a $165 million long position BTC liquidation.
    • Also, $420 million worth of cryptocurrencies were reported to have been liquidated.
    • BTC is currently trading at a price of $36,146.37.

With the Bitcoin and other altcoin prices falling, the global market cap has plummeted today by nearly -10%. BTC alone is trading at a price of $36,146.37, with over -9% downtick in the past 24 hours. Adding to the worst dilemma for BTC holders, $165 million worth of BTC long positions were liquidated in the past day.

In detail, BTC holders and traders who have purchased Bitcoin long positions (expectation for price rise) have been hit with the highest BTC liquidation of the past few months. This liquidation happened yesterday, as the expected price surge or long position for BTC went down.

More significantly, the question is whether holders will give up their BTC earnings or not. To note, the crypto holders might earn a profit, only if they take another long position from the current BTC value, and the price of the coin surges to meet that future.

However, replying to this news, many crypto holders have overwhelmed Twitter (NYSE:TWTR) with their comments and reactions. A Twitterati named Kripto Man posted that the cryptocurrency future is undermined by margins and greedy exchanges, and this will most likely kill this potential market, creating a loss of confidence.

Also, Tajo Crypto, a crypto holder tweeted that leverage trading for Bitcoin is a tough business as the coin is very volatile and liable for high-risk high-reward.

Additionally, several crypto market trackers reported that nearly $420 million worth of orders on cryptocurrencies were liquidated during the BTC price fall. Among these, over 65% of liquidated orders on crypto exchanges were long positions. Following Bitcoin liquidation, Ethereum and ApeCoin were also liquidated; around $12 million of APE is reported to have been liquidated.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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