Bitcoin (BTC), the largest cryptocurrency by market capitalization, sank below $40,000 on the crypto exchange Huobi, the lowest of any major exchange during Tuesday’s crypto market correction.
The latest market sell-off sent bitcoin’s price to as low as $42,921.27 over the past 24 hours, according to CoinDesk 20. But according to TradingView and Huobi, bitcoin dropped to a shockingly low $39818.18 on Huobi.
Forced closure of long positions or bullish trades account for $3.22 billion, or over 90% of total liquidations, which shows the leverage skewed excessively bullish across the market. Liquidations happen when trades cannot fulfill margin requirements for holding long/short positions and often exacerbate bullish or bearish price trends.
It “looks like it was a standard de-leveraging event,” Rahul Rai, co-head of market neutral at crypto investment firm BlockTower Capital, told CoinDesk. “Huobi had the second most liquidations after Bybit…more liquidations [means] spot bitcoin selling [and] bitcoin trades lower on Huobi.”
Data from Skew shows that more than $290 million worth of bitcoin futures positions were liquidated on Huobi, the second most behind Bybit.
At press time, bitcoin was trading at $47,284.18, down 8.62% in the past 24 hours, according to CoinDesk 20.