Bitcoin and Ether's $500M Drop Kickstarts Unprecedented BTC Era

• Crypto Futures Traders Face Substantial Losses Following Monday's Trading Session
• Performance of Different Crypto Currencies
• Nearly Half a Billion Lost in Longs
• Details of Crypto Liquidations
• Biggest Single Liquidation Order
• Bitcoin's Rally: Backed by Strong Fundamentals
• Increased Interest in Bitcoin Expected

Crypto Futures Traders Face Substantial Losses Following Monday's Trading Session

In a recent volatile trading session, crypto futures traders experienced over $500 million in liquidation of positions. This drastic change affected both longs and shorts, which are heavily leveraged. Major tokens, including Bitcoin$42,260 -0.64% (BTC), Chainlink$15.6 -4.61% (LINK), Cardano's ADA and Solana$104 5.03%'s SOL experienced significant drops, with Bitcoin fluctuating from $43,000 to a low of $40,300.

Performance of Different Crypto Currencies

Other major tokens like Chainlink (LINK), Cardano's ADA, and Solana's SOL also plummeted over 8% before showing signs of minor recovery. However, meme tokens such as shiba inu (SHIB) and dogecoin (DOGE), known for their riskier nature, fell slightly less with a 5% drop.

Despite the general market weakness, BNB$312 -5.65% of BNB Chain, Avalanche's AVAX, and Celestia's TIA demonstrated resilience with gains up to 20%. It is noteworthy that these currencies were unaffected by Bitcoin's weakness.

Nearly Half a Billion Lost in Longs

A staggering $475 million in longs, or bets on price increases, and $73 million in shorts, or bets in contradiction, suffered losses. High funding rates contributed to a generally unstable market environment, and the unwinding of leveraged bets.

Details of Crypto Liquidations

Scores of crypto liquidations exceeding $500 million were observed in the previous 24 hours. According to data, the majority of these liquidations occurred on OKX, amounting to $190 million. Binance followed with $148 million and Huobi$2.62 -0.25% with nearly $60 million.

Biggest Single Liquidation Order

Bitmex saw the largest single liquidation order, a chainlink (LINK) futures position over $33 million. Liquidations typically take place when an exchange forcibly shuts down a trader's leveraged position due to a partial or total loss of the trader's initial margin, that occurs when a trader cannot meet the margin requirements for a leveraged position.

Bitcoin's Rally: Backed by Strong Fundamentals

Despite the volatile market, some market watchers believe Bitcoin's recent surge is supported by robust fundamentals, leading it into a never seen before era. Muneed Ali, founder of Bitcoin development firm Trust Machines, conveys optimism for the Bitcoin ecosystem because of the rise of Ordinals and Bitcoin L2s.

Increased Interest in Bitcoin Expected

Ali anticipates increasing interest in Bitcoin by 2024, with potential ETF approvals, the halving event and an influx of new developers.

Edited by Jonathan Stoker