Bitcoin, the world’s most popular cryptocurrency, has experienced a significant drop in price on March 2, leading to over $200 million in long liquidations across various crypto derivative exchanges. The sudden decline occurred after bitcoin’s price had stayed above the $23,000 threshold for almost a week.
According to statistics from Coinglass, 78,116 traders were liquidated when the price fell below the $23,000 mark at 8 p.m. Eastern Time on March 2. This resulted in a total liquidation of $237.97 million, with $206 million worth of liquidations happening on that day alone. The largest liquidation occurred on Okx, while Binance, Bybit, and Okx recorded the most liquidations in the past 24 hours, followed by Huobi, Coinex, and Deribit.
The total open interest in bitcoin futures reached a peak of $9.73 billion on Feb. 21, but it has since decreased to $9.06 billion as of March 2. The trading volume and open interest for bitcoin futures increased throughout February, reaching a total of $791 billion, with Binance accounting for $468 billion of that amount.
On March 2, there were $9.2 million in short positions betting against BTC’s value rising. The liquidations on March 2 were nearly as high as the number of long liquidations that occurred on Feb. 8 when $254 million in long positions were wiped out. The March 2 liquidations more closely matched those on Jan. 17, which saw $190 million in long positions liquidated.
Bitcoin’s price had remained above the $23,000 threshold and then rose to a peak of $23,829 per unit on March 1. However, the sudden decline on March 2 led to a significant loss for many traders and investors.
The drop in bitcoin’s price also had an impact on the overall trading volume of cryptocurrency derivative exchanges. In the past 24 hours, 65 cryptocurrency derivative exchanges recorded a trading volume of $171 billion, representing a 21.85% change from the previous day. The trading volume and open interest for bitcoin futures had been steadily increasing in February, but the sudden drop in price on March 2 resulted in a significant loss for traders and investors.
Bitcoin has been known for its volatile nature, and its price fluctuations have often resulted in significant losses for traders and investors. Despite this, many people still see bitcoin as a viable investment opportunity due to its potential for high returns. However, the recent drop in price serves as a reminder of the risks involved in investing in cryptocurrency.