2021 Culminated With More Than $100B In BTC Liquidations

2021 culminated with more than $100 billion in Bitcoin liquidations with the swings in price during the course of the year so let’s read more in today’s Bitcoin latest news.

There have been liquidations along with the longs and shorts that came out of the billions of dollars and the investors oftentimes got greedy and had to deal with the consequences of their actions because of the larger number of liquidations in a short period of time. For 2021, there have been a number of memorable liquidations that took place, and once was during the September crash that saw liquidations go into the hundreds of millions. However, the reports show that 2021 culminated with more than $100 billion in liquidations.

While things such as funding rates, futures basis, and leverage were hot topics in the space, none came even close to outlining how much risk traders are taking in the market this year. The liquidation numbers took care of this as it shows that BTC traders had a very risky year and took some big leaps that left them shaken. Accoridng to the Arcane Research reports, there have been over $100 billion liquidations for this year alone. This varies across the long and short liquidations with the latter taking the bigger hit. Long liquidations for the year came to $84 billion and as a result of the crashes that saw the traders losing a lot on the market. Most driven by the bullish trend that the digital asset maintained for the year and though that BTC will continue on this trend.

Short liquidations came out lesser compared to the long at $46.89 billion which is 50% less than the long liquidations. It is still a huge number that shows that the short traders are getting burned by the market’s volatility even if not to the same extent as the other traders. With the liquidations taking place on the market, some exchanges suffered more than others. Mostly, it came down to the fact that these exchanges are much bigger and that they attract more traders that place more bets on the platform. When the liquidations took place, they record the highest volumes compared to others which is the case with Bybit and Binance.

These two exchanges saw the majority of the liquidations across both the longs and shorts. Binance is the largest exchange that saw the largest portion of this while ByBit came second. The liquidations trends are expected to continue in 2022 and the reason for this is that more traders are developing a higher risk appetite and hope to make more money trading. With the BTC price being volatile, a good number of these traders will be liquidated.