- If Bitcoin hits the $102,700 range in its value, liquidations in long positions of $1.45 billion may happen.
- Leveraged trades on the primary exchanges such as Binance, Bybit, and OKX increase the market’s exposure to volatility.
- Investors have to toughen themselves up for market turbulence even before Bitcoin reaches the point where liquidations can happen.
If Bitcoin (BTC) goes to $102,700, then it’s estimated that around $1.45 billion long outstanding positions might get liquidated.
Only a few hundred dollars more would put Bitcoin at this key level, as its price is currently trading at $103,753. Crypto market analyst, Ali (@ali_charts on X) points out that it would be around a $1,000 drop in Bitcoin’s price that would initiate serious the liquidations.
Analysis Shows Which Exchanges are Most Vulnerable to Bitcoin Liquidation Threats
The chart included with Ali’s post outlines the probable losses for each of the main exchanges. The chart shows the breakdown of potential liquidations with Bybit set to lose $31.93 million; OKX will record $14.97 million losses, while Binance racks up $37.68 million losses in liquidations. When they are put together, these numbers total to the jaw dropping figure of $1.45 billion.
Source: X @ali_charts
By having such a large number of leveraged positions where traders use borrowed money to increase their investment bets, the market becomes much more susceptible to risks. Thus, a drop in the price of BTC to $102,700 would trigger the closing of millions of leveraged positions that would result in a very vicious cycle of liquidations, thus pushing the prices lower.
Such liquidations are also likely to increase volatility to where prices will fluctuate almost too rapidly for traders and the stability of the market. Meanwhile, whale alert data has revealed that Coinbase institutional, an entity of the Coinbase cryptocurrency exchange received a large deposit of BTC when the leading crypto asset traded at $105,000.
BTC’s price has been on the rise following the positive development on the tariff war between the US and China.
