Following reports that BlackRock’s Spot Bitcoin ETF was listed on the Depository Trust & Clearing Corporation (DTCC) with the ticker IBTC, the price of BTC rose above $35,000 based solely on investors’ expectations. The rapid nature of this boom caught tens of thousands of cryptocurrency traders in the crossfire as more than $400 million was liquidated in a single day.

More than 95,000 cryptocurrency traders lose their positions

According to Coinglass data, cryptocurrency liquidation volumes rose rapidly after Bitcoin prices rose. The platform reports that approximately 95,000 traders have been liquidated, with short traders bearing the brunt of these liquidation trends.

Of the $400 million liquidated within a 24-hour period, short traders accounted for $75.83 million which amounted to $303 million. However, long-term traders were not left out of the attack, as liquidation volumes of $96.88 million still came from long positions despite the cryptocurrency market’s upward trend.

BTC liquidations cross $222 million | Source: Coinglass

The largest liquidation order was executed on the BTCUSDT pair on the Binance cryptocurrency exchange. This trader lost a staggering $9.98 million when his position was liquidated. In the same vein, Binance also saw the highest liquidation volumes of all cryptocurrency exchanges at $133.88 million.

Bitcoin accounted for the vast majority of liquidation volumes at $222.93 million. Ethereum comes in second with a liquidation volume of $59.93 million. Solana took third place with $10.35 million. But interestingly, Triller (TRB), a low-cap altcoin that just made it into the top 200, took fourth place with $9.40 million liquidated. The altcoin was one of the most impressive performers during the market action as well, rising from the $50 range to $96 before pulling back.

Bitcoin shows strength

Although Bitcoin has since retreated from its 2023 high of $35,000, the leading cryptocurrency continues to show dominance. Daily trading volumes have already risen to over $46 billion, meaning investors are returning to the cryptocurrency en masse.

This indicates a desire to buy Bitcoin at higher prices and this will continue to support its price. With buyers currently outnumbering sellers in this market, Bitcoin’s correction will likely only be temporary and a resumption of the price rally could send BTC past $36,000 next.

Also, BlackRock’s ETF listing on DTCC is still very new and still providing fuel for the rally. This will likely continue for another couple of hours before exhaustion sets in and leaves plenty of time for Bitcoin to regain its footing for another rally.

If Bitcoin price exceeds $36,000, liquidation volume is expected to rise further. This could lead to one of the worst liquidation trends in 2023.

BTC price still holds steady above $34,000 | Source: BTCUSD on Tradingview.com

Featured image from YouHolder, chart from Tradingview.com