Price dump spikes liquidations
The high volatility has given rise to high liquidation in the BTC market. According to data provider Skew, BitMEX witnessed total hourly liquidations of $276 million within the past three days. Out of the total liquidations, $261 million were sell-liquidations, whereas the remaining $15 million accounted for buy liquidations. However, there has been higher liquidation that has taken place in the market like in July 2019.
BTC continued devaluating on September 4 too, as approximately $75 million longs were liquidated within a single hour on BitMEX.
Interest decreases as the market shrinks
The selling pressure also resulted in the overall open interest to collapse from an ATH of $5.689 billion to $$3.602 billion within a month.
As the sell-offs escalated on 3 September, BitMEX’s XBTUSD open interest also shrunk rapidly from $780.94 million to $622.01 million. However, despite losing interest in the market, 3 September was the most active session of the month for Bitcoin. According to Skew, BTC spot crossed $1 billion in total, while Coinbase did $327 million and was closely followed by LMAX Digital with $294 million.
Upwards and Onwards?
Although the largest crypto asset has suffered a great dent in its value over the past couple of days, the traders were expecting the price to fill the trading gap on the Chicago Mercantil Exchange [CME]. Historically, this gap has been filled with the price sooner-or-later retracing back to the gap. At press time, Bitcoin was being traded at $10.218 with a market cap of $191.43 billion.