Bitcoin price drops with long sell-offs

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The following is taken from a recent edition of Deep Dive, Bitcoin Magazine’s high-end market newsletter. To be among the first to receive this and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

As it turned out to be a typical move in the bitcoin market, the price fell below $ 60,000 as there were $ 154.5 million of long sell-offs on Tuesday, with the majority share of 28% coming from of Binance. We covered the potential for another move to wipe out leveraged long positions on the downside in The Daily Dive # 084 by saying:

“With the percentage of open interest on BTC margin declining significantly from the all-time high the previous April, the conditions for a similar derivatives-driven market cascade are simply not here from where they were.” in April. This does not mean that leveraged longs cannot be wiped out in the short term, and a pullback below $ 60,000 caused by liquidations is entirely possible, but rather that, generally speaking, the market is. much less sensitive to slowdowns than it was previously in 2021. ”

With leveraged open interest reaching an already declining price, the entire cryptocurrency market saw $ 810.58 million in long sell-offs. For context, this is a relatively modest sell-off over the past three months after seeing $ 1.23 billion in lengthy bitcoin sell-offs in early September.

Source: bybt

With the liquidation move, we can see the daily perpetual fund rate drop from 0.3% to 0.1%. Along with the slowdown in the funding rate, the open perpetual term interest wiped out about 8% in the move.

Source: Glassnode

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