Bitcoin price spikes to $48K on Binance, liquidated over $640 million worth of short positions, users complained and Binance’ respond
As AZCoin News reported, Bitcoin price is skyrocketing at the moment, reaching as high as $40,000 on some exchanges. Futures prices went even higher with BTC tapping $48,000 on Binance futures. Today’s liquidation volume has exceeded $ 800 million and the main short order has been liquidated.
There is a Bitcoin price difference of up to $8,000 between Binance’s spot and perpetual contracts
According to Tradingview, Bitcoin is up 14% in the past 6 hours. BTC has now retreated to trade at $38,189 at press time. The big momentum started when Bitcoin broke out of a trading range at around $32,000, pushing to a two-week high above $34,000. BTC continued to build from there, culminating in a massive spike within the past hour.
A few hours ago, Binance’s spot and perpetual contracts had just seen a huge spread of up to $8,000. At that time, BTC rallied to nearly $40,000 on the spot market, and on the futures market, the price reached $48,139.
BTC/USDT 4-hour chart | Source: Binance Spot Market
BTC/USDT Perpetual chart | Source: Binance Future Market
Aside from unconfirmed news that Amazon is set to accept BTC payments, the market has no other major news. We see a short-squeeze with nearly $93 million of short futures orders being liquidated in less than an hour. This move caused today’s liquidation volume to have exceeded $800 million and the main short order has been liquidated. The short-order liquidation amount in the past hour reached $640 million, which is the largest single-day liquidation volume in more than two months.
According to data from Glassnode, more than $110 million in short positions were liquidated in just ten minutes. Will Clemente, on-chain analysis, also stated about this news:
$111,000,000 of shorts liquidated in 10 minutes.
— Will Clemente (@WClementeIII) July 26, 2021
According to Datamish, over $38 million was liquidated on BitMEX and 255 BTC from Bitfinex over the past couple of hours. Quite a few people have expressed outrage at this event.
Faced with this situation, Binance responded as follows, “API user place wrong orders, the liquidation price is the marked price, the extreme price will be automatically removed, and the user will not be affected.”
All of the top coins are in the green at the moment as Bitcoin pulls them higher. Those making the most out of the market momentum include Cardano, Polkadot, Litecoin, and Chainlink. The stablecoins have largely dropped a little off their pegs as the buyers load up. Total market capitalization has cranked 10% on the day to top $1.55 trillion, its highest level for three weeks.
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