Bitcoin is off to a robust start in December, surging to more than $38,000, causing a colossal effect in the realm of digital currencies. Almost touching the $38,400 mark, this significant leap is reshaping the crypto landscape.
Within the span of just a single day, a staggering $36.88 million worth of short positions were wiped out, causing a storm in the crypto market. The major crypto exchange, Binance, was at the centre of these liquidations, experiencing a huge chunk of around $15.62 million.
Liquidations are forecasted to reach the mammoth amount of $500 million if Bitcoin’s price oscillates in the range $38,300 to $39,000. Such volatility points towards an immense amount of leverage at play in the crypto sector.
We’ve also seen how Bitcoin’s appreciating price is triggering a boom in Bitcoin futures and options’ open interest. With a noticeable rise of 4%, more investments are now flowing into Bitcoin derivatives. Currently holding the fort for leading Bitcoin open interest, Binance continues to dominate the Bitcoin market.