Bitcoin’s recent price drop has resulted in a significant amount of long liquidations on crypto derivative exchanges. According to reports, $237.97 million worth of long liquidations occurred in the past 24 hours, with $206 million of that happening on March 2 alone. This decline in bitcoin’s price has caused concern among investors, as the cryptocurrency’s value has been steadily rising in recent months.
The drop in bitcoin’s price comes after it reached a peak of $23,829 per unit on March 1. However, on March 2 at 8 p.m. Eastern Time, the price of bitcoin fell, dropping below the $23,000 mark. This decline has resulted in a significant amount of long liquidations on a variety of crypto derivative exchanges.
In the past 24 hours, 65 cryptocurrency derivative exchanges recorded a trading volume of $171 billion, which represents a 21.85% change from the previous day. Throughout February, the trading volume and open interest for bitcoin futures increased, reaching a total of $791 billion, with Binance accounting for $468 billion of that amount.
On Feb. 21, 2023, the total open interest in bitcoin futures peaked, indicating that investors were bullish on the cryptocurrency’s future. However, the recent price drop has caused some concern among investors, who are now questioning whether bitcoin’s value will continue to rise in the coming months.
Despite the recent drop in bitcoin’s price, some experts remain optimistic about the cryptocurrency’s future. They believe that bitcoin’s value will continue to rise in the long term, as more investors begin to see the potential of this digital asset. However, others caution that the cryptocurrency market is highly volatile and that investors should be prepared for sudden price drops like the one that occurred on March 2.
