Binance Sees Major Long Liquidations as Bitcoin Dips
Binance experienced the largest wave of long liquidations on November 12. This occurred as Bitcoin briefly fell below $103,000, preceding a final vote intended to avert a U.S. government shutdown. Data from Coinglass indicates that the exchange processed over $120 million in leveraged positions within a few hours. This event marked one of the most significant deleveraging periods of the month across major cryptocurrency exchanges.
The price decline initiated a liquidation cascade. Traders who were heavily positioned on the long side were compelled to close their positions once critical support levels were breached. Despite this temporary downturn, analysts have observed that the underlying fundamentals remain unchanged. They view this correction as a healthy reset, particularly after weeks of excessive leverage. Overall sentiment in the broader crypto market has remained constructive. Traders are anticipating renewed inflows once macroeconomic uncertainty subsides and institutional liquidity re-enters the market.
Market participants are now closely monitoring ETF inflow data. Additionally, they are looking for potential stabilization in derivatives funding rates, which could signal a short-term recovery for the market.
Important Considerations
The information presented in this article is for informational purposes only and should not be interpreted as investment advice. The cryptocurrency market is highly volatile and may involve significant risks. We recommend conducting your own analysis.