Bitcoin began December on a high note, surging past $38,000 and nearly reaching $38,400, indicating a significant impact on the cryptocurrency market.
Around $36.88 million in short positions were liquidated in a 24-hour period, with Binance exchange experiencing the highest liquidation amount at $15.62 million.
The current market scenario also indicates the possibility of an additional $500 million in liquidations if Bitcoin’s price fluctuates between $38,300 and $39,000. This suggests that there is a significant amount of leverage at work in the market.
Furthermore, the increase in Bitcoin’s price has resulted in a 4% increase in open interest for Bitcoin futures and options.
This upward trend indicates an increasing inflow of funds into Bitcoin derivatives. Notably, among various platforms, Binance has taken the lead in Bitcoin open interest.
Market participants are closely monitoring the evolving dynamics and potential further impacts on both liquidations and derivatives trading as Bitcoin’s price continues to rise.
Sophia Hernandez is an experienced crypto writer who has been writing about crypto and blockchain technology for 3 years. She has a deep understanding of the complexities of the crypto market and is skilled at breaking down these concepts into easy-to-understand language for readers.
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