The price of Bitcoin (BTC) falls 14% from around $9,450 to $8,101 in less than 15 minutes due to a sudden crash on May 10 (yesterday), as this appears to have shaken out over-excited margin traders, who wanted near $10,000 on heavy margin.
However, by contrast, liquidated shorts totaled $5.7 million.
It has been analyzed that around 93% of yesterday’s liquidations took place in BitMEX’s XBT/USD markets, with Ripple (XRP) liquidations exhibiting 4.1% with $12.3 million, and Ethereum (ETH) margin calls comprising 2.2% with $6.5 million, as XRP and ETH short liquidations exhibited just 0.02% and 0.22% of the respective markets’ total liquidations.
Leverage longs at the $10,000 zone drove huge liquidations during yesterday’s flash crash https://t.co/eDTaKjFNec — Cointelegraph (@Cointelegraph) May 10, 2020
Likewise, the liquidations likely wiped out the wants of many retail investors hoping to cash-in on the upcoming halving. But they may not have considered is that Bitcoin had already gained 150% in less than two months.
As per the report, many top cryptocurrency exchanges have contributed to driving hype for the halving in recent weeks by posting articles highlighting bullish cases for the block reward promotion.
Thus, traders who purchased at $10,000 would be sitting on a 15% loss as of this writing, except for those who purchase with leverage of 5x or greater, who would have been liquidated during the flash crash.