Short Orders Account for 87% of Futures Liquidations After BTC Price Exceeds $30,000 – Bitcoin Becomes 11th Largest Asset in the World

Bitcoin surged to a 10-month high overnight, peaking at $30,411 after a dizzying two-day rally. During that rally, BTC’s market capitalization hit $585.05 billion — quickly becoming the 10th largest asset in the world.

While BTC has since consolidated around the $30,000 mark—potentially creating some support—market sentiment remains extremely bullish.

Source: TradingView

According to CompaniesMarketCap, BTC has surpassed Tesla by a few hours – the company has a market capitalization of $584.7 billion and ranks 11th among the top 100 listed companies, precious metals, cryptocurrencies and cryptocurrency ETFs. Consolidation to $30,000 pushes Bitcoin back to 11th place – allowing Tesla to retake 10th place.

However, BTC still ranks higher than Facebook’s Meta, which has a market capitalization of $556.7 billion and is the 12th largest asset in the world.

The table shows the top 15 assets by market capitalization as of April 11, 2023. Source: Companies MarketCap

This isn’t the first time Bitcoin has overtaken a long-established traditional company. However, this is the first time that listed companies may experience large fluctuations in the near future.

Current macroeconomic conditions make it difficult for stocks and other assets. If the U.S. market falls into an inflationary recession — not a recession — stock prices will be hit first. A decade of low interest rates and an unprecedented round of pandemic stimulus have pushed stock prices to record highs.

Maintaining these prices through rate hikes and potentially stagnant inflation will be difficult and could result in huge losses across the market. As more and more investors flock to Bitcoin as a way to preserve its liquidity, we could see another major bull run that pushes Bitcoin back toward Tesla — and closer to the millennial giant, Such as Amazon and Alphabet.

Short orders accounted for 87% of futures clearing

Bitcoin broke through the key $30,000 level for the first time since June 2022, dealing a heavy blow to traders who bet on the downside.

The total value of liquidations in the past 24 hours was approximately $200 million, with more than 87% of cleared futures trades being short or short positions. In the process, losses on these transactions totaled approximately $145 million. Cryptocurrency exchange Huobi has liquidated over $45 million on its platform, followed by partners Binance and OKX with $35 million each.

Source: Coinglass

The largest single liquidation occurred on Huobi, an $11 million Bitcoin/Tether transaction.

Forced liquidation refers to the forced liquidation of a trader’s leveraged position by the exchange due to the trader’s loss of part or all of the initial margin. This happens when a trader is unable to meet the margin requirements of a leveraged position (not having enough funds to maintain the trade).

Large liquidations can signal localized tops or bottoms of strong price action, which can allow traders to position themselves accordingly.

Some believe that Bitcoin’s recent strength may be due to deteriorating economic conditions, which could lead investors to adopt decentralized assets.

Alex Adelman, CEO of Bitcoin rewards app Lolli, said:

“Bitcoin has effectively decoupled from traditional markets since the start of the year, rising more than 80% while stocks plummeted. Bitcoin’s dominance over traditional markets suggests investors are increasingly shifting money to Bitcoin, Build wealth by choosing Bitcoin over traditional investments.”

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