For a second consecutive year, long liquidations dwarfed that of shorts by more than two-fold. In 2018, long liquidations reached $11 billion by the year’s end while short liquidations hovered at $5 billion. In 2019, long liquidations have totaled nearly $13 billion.
What precedent does it set for the trend of Bitcoin in 2020?
Bitcoin started out strongly in 2019, rising to as high as $13,900 by June. However, in the latter half of the year, the momentum of the dominant cryptocurrency started to dwindle. Volumes dropped, overall interest in crypto noticeably declined, and deal value in the industry plunged in the final quarter of the year.
As the sentiment around Bitcoin started to turn around, it led investors to reminisce about the events that led up to the intense crypto market correction in late 2018.
Last December, the bitcoin price fell from around $6,500 to the low $3,000s within a single month, possibly due to miner capitulation and a sell-off during the holiday season. As such, investors were concerned that a similar trend could occur in late 2019. Read More...