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How massive liquidations caused Bitcoin to plummet 16% in 24 hours

Published 11/26/2020, 05:35 AM
Updated 11/26/2020, 07:20 AM
How massive liquidations caused Bitcoin to plummet 16% in 24 hours
BTC/USD
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Bitcoin (BTC) price fell by a whopping 16% to $16,334 on Nov. 26 since achieving its peak at $19,484 the previous day. Data suggests that cascading liquidations were the driving force of the massive correction.

Prior to the pullback, the open interest of the Bitcoin futures market hit a new record high. The derivatives market was also overheated with buyers, causing the market to sway to one side.

BTC futures volumes. Source: Cointelegraph Markets, Digital Assets Data
All Bitcoin Exchange Inflow Mean. Source: CryptoQuant
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