Data gathered by InsideBitcoins.com showsthat between March 21st and April 21st at least $826 million was liquidated on leverage trading platform BitMEX. The high liquidation occurred during a period when Bitcoin was facing extreme volatility.
The massive amount of funds liquidated
The data indicates that long positions with a total Bitcoin volume of $446,120,043 were liquidated on the exchange. Elsewhere, liquidated short positions had a value of $380,485,690. In total the liquidated amount was $826,605,733. According to the report:
“The massive amount in liquidation ties with a period Bitcoin experienced extreme volatility. For example in mid-April when the market was rallying Bitcoin price to settle above $6600, the top cryptocurrency spiked to around $7,100, a move that forced liquidations of futures on BitMEX.”
On the other hand, Bitfinex saw Bitcoin’s long positions worth $570,067 liquidated while short positions liquidated were valued at $4,121,301. In total, both liquidated long and short positions were worth $4,691,368 of Bitcoin.
An overview of the daily BitMEX insurance fund balance change Year-to-Date (YTD) shows it has grown by 1,964 Bitcoins ($13,654,356.48) since the first day of the year. On January 1st, 2020, the balance was 33,506 Bitcoins ($233.7 million) and by March 21st the balance was 35,470 Bitcoin ($247.4 million). Notably, the balance, despite increasing, has been fluctuating over the last months.
The first drop of the year was on January 19th at 33,771 Bitcoins (235.6 million) before embarking on an upwards trajectory to hit the year’s all-time high of 36,493 Bitcoins (254.7 million) on March 13. The balance later dropped to 34695 Bitcoins (242.2 million) on March 16.