- Over $20 million in Bitcoin shorts were liquidated on BitMEX as Bitcoin rebounds.
- Bitcoin is approaching the $10,000 level, trading at$9,700.
After days of little price action, Bitcoin made a sudden move upwards, triggering a wave of Bitcoin short liquidations. According to cryptometer.io, over $20 million worth of Bitcoin shorts were liquidated in the last 24-hours on BitMEX.
Bitcoin short positions allow traders to make money when Bitcoin’s price falls. On the flip side, if Bitcoin’s price rises, Bitcoin short positions lose value. With many traders using leveraged positions, small price movements can result in position liquidations. For example, traders using 20x leverage will experience gains at 20x the standard rate as well as experience losses at 20x the standard rate. Thus, a 5% price slippage can result in entire positions being liquidated.
Massive Looming Bitcoin Options Open Interest Expiry
While many traders distastefully look at their now liquidated positions, an even more significant event is due to occur this week. As reported by The Crypto Associate, over $1 billion in Bitcoin options open interest is due to expire this week.
According to Skew, a cryptocurrency data analytics platform, 114,000 Bitcoin worth of Bitcoin options open interest is due to expire Friday, June 26.
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