Bitcoin (BTC) experienced a day of high volatility yesterday, Monday, December 9, resulting in the liquidation of $1.5 billion in the futures market.
The quote of the coin created by Satoshi Nakamoto fell from $100,000 to $94,900. Currently, its price is $97,800.
Bitcoin’s performance put downward pressure on the rest of the cryptocurrencies, which, in some cases, had drops of more than 30%.
In the futures market, meanwhile, the losses were millionaires. According to data from Coinglassin the last 24 hours, $1.5 billion was liquidated from 511,738 traders in leveraged positions in BTC and cryptocurrencies.
As seen in the following graph, 92% of these settlements, the equivalent of 1,390 million dollars, corresponds to long positions (long)investors who were betting on a rise in the price of BTC and the rest of the cryptocurrencies.
The remaining more than 184 million dollars correspond to short positions (shorts), that is, from traders who bet on a fall in the price of digital assets.
As explained in Criptopedia, the educational section of CriptoNoticias, leverage is a financial strategy that allows investors to increase their exposure to the market with borrowed capital.
With that money, traders can bet that the price of the digital asset will go up (long position) or go down (position). If the price moves in favor of the investor, he can make big profits.
However, if the price moves in the opposite direction, the losses will be greater. In this scenario, if the trader does not have sufficient funds to meet the maintenance requirements, the exchange or platform will proceed to close the position.
High volatility day for BTC
Microsoft’s shareholder meeting will vote this December 10 on the proposal to make an “investment evaluation in bitcoin.”
A result in favor of the initiative, could take BTC above $100,000 again.
However, and as CriptoNoticias already reported, the Microsoft Board of Directors recommended voting against, arguing that an investment in BTC “is unnecessary” due to the volatility of digital currencies. This could cause falls in the price of bitcoin.
According to Polymarketthe cryptocurrency betting platform, only 11% believe that Microsoft shareholders will vote yes to evaluating investments in BTC.
Beyond this pessimistic outlook, eyes are on what may happen during that meeting, because Microsoft ranks third among the world’s most valuable public companiesonly surpassed by Apple and Nvidia.
