CryptoQuant Analyst: Bitcoin's recent fall is driven by leverage, with $500 million in long positions getting liquidated in 1 hour.

Coinglass data shows that in the past 24 hours, the crypto assets market has gotten liquidated by approximately 1.97 billion USD, while the top ten crypto assets by market capitalization (excluding stablecoins) have all experienced double-digit falls in the past 24 hours, intensifying the dumping trend. As a result, the total market capitalization of crypto assets has fallen below 3 trillion USD for the first time in seven months. The S&P 500 index stabilized after a decline on Thursday, indicating that this drop is mainly concentrated in the crypto assets sector.

CryptoQuant's certified analyst Maarten Regterschot stated: “This is the first large-scale dumping since October 10. The historic liquidation event on October 10 was driven by spot selling, while the current fall is driven by leverage.”

According to Velo's data, the open interest in Bitcoin (representing the total number of open positions) exceeded the level of 5,000 Bitcoins on October 10, reaching 295,054 Bitcoins on Thursday. However, the cumulative fall over the past 48 hours has offset this increase, causing the indicator to drop by about 8,500 Bitcoins to 286,461 Bitcoins.

At the current price of Bitcoin at $82,000, the decline in the value of open contracts is nearly $700 million. A close analysis reveals that approximately $500 million in Bitcoin long positions were liquidated within an hour. (Decrypt)