Bitcoin’s Sudden Spike Toward $42K Leaves $200 Million in Liquidations

A few hours ago, the bitcoin price spiked to $41,700, charting an increase of 5.6% in less than an hour. Unfortunately, the cryptocurrency retraced just as quickly and left over $200 million in liquidations for the day.

• Bitcoin’s choppy sideways price action continues with full force. Just a few hours ago, the cryptocurrency spiked from $39,000 to $41,700 in less than two hours.
• The move marked an increase of around 7% but the celebrations were short-lived.
• BTC went down quicker than it went up and less than an hour after that, the price was trading back at $39,000.
• This completed a spike of 7% in both directions, leading to considerable liquidations from both bulls and bears.

• There was no obvious catalyst for the move that’s native to the cryptocurrency industry, but the Asian stock markets began trading at around the same time and it was in the green.
• In any case, the massive volatility took its toll on the derivatives markets and the liquidations for the past 24 hours surpassed $200 million according to data from CoinGlass.
• The largest single liquidation order happened on OKEx and it was a BTC perp with a face value of a whopping $6.44 million.