- About $1.6 billion Bitcoin positions have been closed amid the BTC drop below $54k.
- Some traders think BTC will drop below $50k. However, CryptoQuant CEO suggests the bull run may not be over.
Some derivative traders have been forced out of the Bitcoin market by cryptocurrency exchanges following the decline in the market value of the crypto. During press time, BTC was trading at $53,975 on Coinmarketcap, which represents about a seven percent decline in price over the past 24 hours.
Over $1 billion Bitcoin positions closed
As Bitcoin declined below $54,000, lots of open interest in BTC were liquidated across several derivative trading platforms. In total, $1.6 billion of overleveraged positions were closed, mostly on Binance. The leading exchange saw as much as $827 million worth of Bitcoin positions liquidated.
Other exchanges include Bybit ($357 million), Huobi ($284 million), OKEx ($55.5 million), FTX ($55.4 million), BitMEX ($47.5 million), Deribit ($7.1 million), and BitFinex ($3.5 million).
Per Bybt, open interest is down by four percent over the past 24 hours. There is currently $20.5 billion worth of OI in Bitcoin.
Is the Bitcoin rally over?
Following the current state of Bitcoin and the crypto market in general, many people are probably wondering whether BTC’s rally is over.
Some industry players, like Ki-Young Ju, the CEO of CryptoQuant, don’t think the bull market has reached the peak. Firstly, he noted on Twitter that Bitcoin velocity recently reached the year-high. However, it’s still very low compared to previous bull-runs. He also pointed out the low Fund Flow Ratio across all exchanges, which he said was bullish.
Meanwhile, popular BTC traders, like Crypto Wendy, expect BTC to retrace back to $45k at most.