Without a second’s notice, $52M worth of shorts on BitMEX were all liquidated.
It seems like a large number of traders got rekt on BitMEX overnight.
The massive liquidation of $52M on the most popular exchange for margin trading came after Bitcoin posted a large green candle — seemingly out of nowhere.
The sudden liquidation event was surprising, given that the rest of the trading day was so quiet. Bitcoin seemed to defy expectations again, however, by posting a green candle which bounced the price up to the $10,500 point from $10,100.
The choppy market has made it hard for margin traders to trade with any degree of predictability. Last week, some traders were calling for the $8.8k-9k as the perfect ‘buy zone’ for Bitcoin. However, despite most technicals pointing towards bearish momentum, Bitcoin once again seems to defy convention wisdom. That is largely why so many shorts were liquidated yet again — a staggering $52M.
Despite rising to $10,500, however, Bitcoin has declined slightly since its green candle. The leading cryptocurrency is now trading at $10,300 and may drop back to the $10,000 area. If you are a smart trader, there is money to be made from these choppy movements—yet, it has become increasingly difficult to trade Bitcoin as of late due to it being somehow more unpredictable than usual.
The $52 liquidation in shorts comes at a time when margin trading has increased in BitMEX during the past week. The amount in its cold storage accounts, which are linked to BTC deposits, has been increasing steadily since July. What this effectively means is that BitMEX trading volume is on the rise — so we might see fresh blood get rekt trying to predict Bitcoin’s market movements yet again in the near future.
Would you margin trade Bitcoin in this choppy market? Let us know your thoughts below in the comments. And if you’re looking for a place to trade with a multiplier that isn’t BitMEX, why not try out StormGain?
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