Crypto traders utilizing options and futures contracts to gain exposure to Bitcoin have suffered significant losses amounting to a staggering $1 billion. This loss comes in the wake of Bitcoin’s sharp decline of over 14% from its recent all-time high of $69,200 on March 5.
According to on-chain analytics provider Santiment, the total open interest (OI) on exchanges for Bitcoin, Ethereum, and Solana experienced substantial declines following Bitcoin’s all-time high. Bitcoin’s open interest dropped by $1.46 billion (-12%), while Ethereum and Solana witnessed decreases of $967 million (-15%) and $424 million (-20%), respectively.
Santiment suggests that the majority of speculation on price came from traders opening long positions in anticipation of Bitcoin surpassing its previous all-time high and holding above $70,000. Additionally, a smaller portion of the market was influenced by short positions being liquidated as Bitcoin briefly touched a new all-time high.
While Bitcoin’s sudden downward price movement may have caused market jitters, many experts view derivatives flush-outs as a common occurrence during price fluctuations. Crypto trader ‘Daan Crypto Trades’ highlighted that approximately $3 billion in open interest was lost during the correction, emphasizing the significant impact on traders.
Data from Coinglass reveals that approximately 312,500 traders were liquidated, resulting in total liquidations amounting to $1.13 billion over the past 24 hours. Bitcoin is currently trading at $63,600, marking an 8% decline from its recent all-time high.
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