Bitcoin Price Swings Could Trigger $1B in Liquidations, Coinglass Data Shows
Fresh Coinglass data suggests sharper liquidation thresholds, with over $1 billion in potential long liquidations if Bitcoin drops below $67,000 and hundreds of millions at risk for shorts above $71,000.
According to updated Coinglass data as of Feb. 10, a drop in Bitcoin’s price below $67,000 could trigger approximately $1.054 billion in long liquidations across major centralized exchanges. Conversely, a rise above $71,000 could lead to around $429 million in short liquidations. These figures mark a shift from prior thresholds, which placed long liquidation risk at $885 million below $68,000 and short liquidation risk at $726 million above $72,000. The updated levels highlight increased leverage exposure and shifting market pressure points in Bitcoin trading.
- Short liquidation: Forced closure of a trader’s short position when the market moves against it, leading to losses.
- Long liquidation: Forced closure of a trader’s long position when the asset price falls below a set threshold.
- Centralized exchange (CEX): A cryptocurrency trading platform operated by a central authority that manages user accounts and order books.