A massive 201,435% liquidation imbalance hit the Bitcoin derivatives market on Tuesday, according to Coinglas. Ironically, this happened as Michael Saylor confirmed another multi-billion dollar expansion in strategic holdings. The software company has revealed it purchased 4,048 btc for $449 million, an average of $110,981 per Bitcoin.
But rather than cheering on the market, the announcement coincided with the sale, pushing the price of major cryptocurrencies to under $109,000, rattling leverage positions across multiple exchanges at once.
An hour after the announcement, Bitcoin Long worth $4.21 million was liquidated, but on the short side, the imbalance was visibly hidden, compared to just $2,090.
However, it is not an isolated event as leverage positions over $393.9 million have been settled for over 24 hours.
Whose margin calls were the most painful?
Binance saw the biggest liquidation of the day. That is, it’s an ETH/USDT position of nearly $9.8 million. The pressure spread far beyond Bitcoin itself, drawing the Altcoin market into the storm.
Saylor’s Company currently holds 636,505 BTC at an average cost of $73,765 per coin, with a total stack of $46,950 million. Saylor & Co. Paper profit of 25.7%.
The conclusion is that despite a large spot accumulation from Saylor and others, Bitcoin’s current price action could be determined by the position of derivatives rather than the purchase of companies. And the unbalanced numbers prove that point today.
