The sudden jump in the price of bitcoin this morning ruined millions of dollars in futures trade. This morning around 6:30 AM (IST), bitcoin’s 15-minute candle started at nearly $36700 and there was a sudden jump in the price and BTC went to $48168 which is the highest till date.
In just 15 minutes, the price of bitcoin went from $36700 to $48168 and immediately it fell below it to $37998. No one would have even had a chance to think that trade What to do with it?
The trader who would have put a stop loss here would have survived but the one who would not have used the stop loss got all his funds liquidated.
It is estimated that the fund worth about 27000 bitcoins got liquidated during this time.
Here are some exchange statistics.
- Bybit – 413.13M
- Huobi – 213.35M
- Okex – 207.69M
- Binance – 111.04M
- Bitmex – 51.20M
- FTX – 32.85M
- Deribit – 24.16M
- Bitfinex – 10.00M
Apart from this, how much damage would have happened to the rest of the exchange and the rest of the crypto community, it will be known in some time.
Furthermore, Binance Exchange had made some new rules for futures trading just a week ago, according to this, any new trader who wants to trade futures cannot take more than 20x leverage.
Also, Binance is now set to stop its crypto margin trading involving sterling, the euro and Australian dollar, as the world’s large cryptocurrency exchange seeks to stave off a widespread regulatory backlash against some of its services.
Less than a fortnight ago, the exchange said it was ending support for its stock market token offering that had drawn consternation from several financial watchdogs.
The price of bitcoin was showing signs of going up according to the chart but it was not known that it will go up this much. There was a huge jump in the price in spot trading also. The price of bitcoin in spot trade by going above $36758 to $39799 which came down immediately.
Due to such large fluctuations in BTC cryptocurrency, the government of many countries avoid giving legal trade status to BTC in their country.