As Bitcoin struggles to break through the $30,000 mark, on-chain data reveals that traders’ bullish long positions are being liquidated. According to CoinGlass, $85.68 million in long positions were liquidated in the last 24 hours, making up the majority of the $116.38 million in positions ‘rekt’ as the crypto market softens. Many of these liquidated traders had high-leveraged positions, with many that held positions between the $30,200 and $30,500 range.
The use of leverage has been increasing since the end of April, with CryptoQuant’s estimated leverage ratio for Bitcoin rising from 0.19 to 0.25. This increase in leverage has been driven by the recent Bitcoin spot-ETF filings by BlackRock and other traditional finance heavyweights, which has revived bullish sentiment in the crypto market. Edward Moya, senior market analyst for foreign exchange market maker Oanda, commented, People are not going to be as optimistic until we get a further update that we’re going to get that ETF done in the States.
At the time of writing, Bitcoin is trading for $30,080, according to market data.