Bitcoin Price Soars Above $66,000, Triggering Liquidations for Over 50,000 Traders

On Wednesday there was an increase, in the price of bitcoin rising by over $4,200, which equated to a 7.1% gain against the U.S. Dollar. This surge pushed bitcoin past the $66,000 mark reaching a peak of $66,461 per coin on Bitstamp. The positive momentum spread throughout the cryptocurrency market resulting in a 6.2% uptick and causing 51,567 traders on crypto exchanges to liquidate their positions during the day.

By 3;45 p.m. Eastern Time (ET) on Wednesday bitcoin had reached $66,300 per unit with a trading volume of $34 billion within the 24 hours. This surge represented a 5.2% increase over the week against the dollar.

The initial rise in bitcoins value coincided with the release of the consumer price index (CPI) report by the U.S. Labor Departments Bureau of Labor Statistics on May 15th. Bitcoins main trading pairs included USDT, FDUSD, USD, USDC and KRW – with trades in Korean won contributing 2.36% to bitcoins transactions. While the worldwide average price stood at $66,300 per coin at that time period; it traded high as $67,632, on Korean exchange Upbit simultaneously.

The sudden surge, in the value of bitcoin caused a significant number of traders to face liquidations in the cryptocurrency market resulting in the elimination of 51,567 traders within a day. In the 24 hours over $127.98 million worth of derivative positions were liquidated, with $83.39 million originating from short positions on cryptocurrencies. Notably there were liquidations amounting to $45.94 million in bitcoin shorts $17.88 million in ethereum (ETH) shorts and $6.27 million in PEPE shorts.

The rapid rise in bitcoins value driven by factors like the CPI report led to a wave of liquidations that particularly affected leveraged positions. This occurrence underscores the level of risk associated with trading in cryptocurrencies, where significant price fluctuations can quickly magnify gains or wipe out investments entirely.