Bitcoin bears lost $178 million when the price crossed $34,000

Bitcoin bears lost $50 million on crypto exchanges Binance, OKX, and Huibi, which shows the heavy use of leverage on these platforms.

Bitcoin (BTC) bearish patterns in the last 24 hours caused traders to lose more than $178 million. The reason for this problem is the price crossing the critical resistance level. Following the approval of a Bitcoin Exchange Traded Fund (ETF), Bitcoin surged.

Bitcoin futures trading accounted for nearly 50 percent of the crypto’s $400 million liquidation on Monday, data shows. In this situation, Ether futures transactions took only 50 million dollars from the liquidation of buying and selling transactions.

Liquidation happens when an exchange forcibly closes a trader’s transaction due to partial or total destruction of capital. This happens when the trader is unable to meet the margin requirements for leverage. It means not being able to provide enough funds to keep the transaction open.

Report: Bitcoin ETF Approvals Could Add $1 Trillion To Crypto Market Cap

Traders of crypto exchanges Binance, OKX and Huibi lost 50 million dollars. This issue shows the high use of leverage in these platforms. The biggest liquidation took place in Binance exchange with a value of 10 million dollars.

The price of Bitcoin increased by 12% before Tuesday and reached $35,200. This movement was probably caused by low volume and excessive demand, which could add tens of billions of dollars to the market value within a few hours.

Crypto communities and analysts attributed this move to the registration of the Bitcoin ETF. This issue is still being investigated by the United States Securities and Exchange Commission.

As you know, the Bitcoin market has been almost stationary for the past few months. These issues could increase people’s hopes for the revival of the crypto bull market.

“Bitcoin will experience an uptrend with possible ETF approval and an increase in ETF submissions,” Lucy Ho (MetaAlpha Senior Trader) said in a message. With the approval of ETF and halving in April, the crypto market can take the upward trend with strength.”

Source: coindesk