Bitcoin (BTC) fell to $ 27,700 and rebounded seconds later it was a shock to some and financial ruin for others, the data show.
According to the on-chain analytical feature Glassnode, futures traders with long positions lost a total of $ 190 million at Binance in a single hour – the most in history.
One exchange, 60 minutes, $ 190 million
The numbers highlight the current face of Bitcoin as it revolves around new historical records and, along with Ether (ETH), becomes the hottest ticket of 2021.
Longs had seen an almost unbridled success throughout much of December 2020 and into the new year, with the positive side seeing little resistance.
Despite warnings from several analysts that the rise could not go on forever, many traders took substantial risks, betting heavily on the continuation of further highs. In the event, $ 34,800 marked a definitive top, with BTC / USD subsequently losing $ 7,000 in 24 hours, including $ 4,000 in less than 60 minutes on Monday.
The result for those who were over-leveraged was easy to see.
“$ 190,000,000 (in long positions) was settled at #Binance in 10 minutes. The highest amount to date,” commented Glassnode next to a chart showing Binance’s settlements.
Risk vs. reward
As Cointelegraph reported, last week, it was short positions that went into mass liquidation when Bitcoin tore $ 30,000 for the first time. This episode caused discovery operators to lose $ 100 million across all exchanges.
“Get used to 5 thousand drops as we go to $ 100 thousand. It comes with the territory,” Samson Mow, director of strategy at technology company Bitcoin Blockstream, summed up on Twitter as volatility continued.
Derivative trading linked to Bitcoin and Ether, however, shows no signs of losing popularity. CME Group, one of the pioneers in Bitcoin futures, is expected to launch Ether futures in the first quarter of this year.