$110 Million Liquidations in 24 Hours: What’s Next for Bitcoin?

Short sellers faced massive losses as Bitcoin’s price surged near $40,000, with over $100 million in losses over the past 24 hours. Despite the overall positive performance of the crypto market, wrapped Bitcoin (wBTC) on Ethereum has not seen the same gains, indicating a potential shift in the market.

The recent market upswing resulted in over $140 million in liquidations, with short sellers bearing the brunt of over $110 million in losses. This massive liquidation was the second-largest amount since mid-November, catching many traders off-guard. Bitcoin traders faced liquidations totaling $36 million, while Ethereum and Solana traders experienced $32 million and $6 million in liquidations, respectively.

Binance recorded the most losses at $53.44 million, followed by OKX at $51 million. As Bitcoin continued its rally, technical analyst Koroush AK suggested that the cryptocurrency had found new resistance at $40,000 and built strong support around $38,000, potentially signaling the beginning of an altcoin season.

In addition to the market surge, wrapped Bitcoin (wBTC) supply on Ethereum decreased by around 2% in November, indicating muted demand for BTC on the ETH blockchain despite its rising value. This decline in supply could be attributed to decreased DeFi appetite and the emergence of BRC-20 on the blockchain network.

In November, there were 160,286 wBTC against 160,293 BTC held in custody, suggesting a decrease in demand for wBTC as several DeFi protocols struggled to reach previous heights.

It’s important to note that historical data reveals fluctuations and trends in the cryptocurrency market. For instance, the recent surge in Bitcoin’s price and the subsequent decrease in wBTC supply on Ethereum highlight the complex nature of the crypto market and the various factors that influence it.

In adherence to the Trust Project guidelines, this news article aims to provide accurate and timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

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