The crypto derivatives market saw liquidations totaling $1.13bn on 26 July, of which short positions accounted for $961.8m, according to Bybt.
Shorts of $883.1m ($720.8m in bitcoin derivatives) closed during the 12-hour period, which coincided with digital gold exceeding the $39,000 level. The catalyst for this move may have been rumours of Amazon adding support for payments in the first cryptocurrency.
Shortly before, on 20 July, the price of the first cryptocurrency dipped below the $30,000 mark. After The B World conference with Elon Musk, Kathy Wood and Jack Dorsey, the price began to rise.
According to Bybt, the last comparable liquidation of shorts ($1.05bn) took place on 18 May, with bitcoin then accounting for less than half of that amount ($446.7m). That day saw a spike in volatility with bitcoin collapsing from $40,000 to $30,000 followed by a sharp recovery to the $36,500 area.
A rebuttal from Amazon led to the liquidation of $267.7 million in already long positions in the 12-hour stretch from July 26-27. At the time of writing, bitcoin is trading near $37,000.
According to Bybt, long and short positions of 89,290 traders have been liquidated in the past 24 hours.
As a reminder, Bloomberg Intelligence senior commodity strategist Mike McGlone called it more likely that the first cryptocurrency would return to the $60,000 mark rather than fall to $20,000.
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