Bitcoin Price Thresholds Could Trigger Billions in Liquidations, Coinglass Data Shows

Coinglass data highlights updated Bitcoin and Ethereum liquidation risk levels, with billions in potential long and short liquidations if key price thresholds are surpassed or breached.

BTC

ETH

209d ago

Fact Check

The evidence strongly supports the statement. Sources 1-7 establish that Coinglass is a platform that provides data on liquidation risks at specific price levels. Other sources (13, 14) provide concrete examples of analyses, likely based on data from providers like Coinglass, showing that Bitcoin price movements toward certain thresholds could trigger liquidations valued in the billions of dollars (e.g., '$1.3 billion' and '$9.41 billion'). The evidence corroborates all components of the statement.

Summary

Latest Coinglass data reveals that a drop in Bitcoin below $113,000 could lead to $984 million in long liquidations, while a rise above $117,000 may trigger $688 million in short liquidations on major exchanges. For Ethereum, falling below $4,100 could spur $1.392 billion in long liquidation intensity, and surpassing $4,400 could prompt $1.564 billion in short liquidation intensity. Coinglass notes these are intensity estimates from a liquidation heatmap, not precise liquidation values, with taller bars indicating stronger expected market reactions.

Terms & Concepts

Liquidation: The process by which leveraged positions are automatically closed by an exchange when an account’s margin falls below required maintenance levels.
Long Liquidation: Forced closure of positions that profit from price increases, triggered when the price drops below a certain threshold.
Short Liquidation: The closing of positions that profit from price declines, triggered when the asset’s price rises past a certain level.