Bitcoin Holds Steady at 5% Loss While Gold, Silver Plunge Amid $300M Liquidation Wave

TLDR:

• Bitcoin’s 5% correction outperformed gold’s 8% and silver’s 12% drops during the Microsoft-triggered sell-off.
• Hyperliquid recorded $87.1M in liquidations, nearly three times Binance’s $30M despite lower trading volumes.
• Binance open interest reached 123,500 BTC, surpassing pre-October levels and marking 31% growth since the crash.
• Leveraged trading appetite persists as traders rebuild positions despite $300M in liquidations within hours.

Bitcoin weathered a 5% decline during a broader market correction that saw gold drop 8% and silver plummet 12%.

The cryptocurrency demonstrated relative stability compared to traditional assets as Microsoft’s AI investment announcements sparked a global sell-off.

Equity markets suffered substantial losses, with the tech giant’s shares falling over 12% and creating ripple effects across major indices including the S&P 500 and Nasdaq.

Liquidation Cascade Reveals Persistent Leverage Appetite

The modest Bitcoin correction proved sufficient to eliminate nearly $300 million in leveraged long positions within hours.

Hyperliquid dominated the liquidation landscape with $87.1 million in wiped-out positions. Binance recorded approximately $30 million in liquidations despite maintaining some of the highest trading volumes globally. The disparity between platforms underscores varying leverage practices across different exchanges.

Market participants continue pursuing exposure through high-leverage positions, generating sudden volatility spikes. These movements often amplify through liquidation cascades that compound initial price pressures.

The pattern persists despite the October 10 event that previously destroyed substantial liquidity and capital. Traders appear undeterred by past liquidation episodes.

Risk appetite remains elevated among cryptocurrency investors seeking amplified returns. According to @Darkfost_Coc on X, the recent turbulence emerged within a context where traditional safe havens also faced pressure.

The synchronized decline across asset classes marked an unusual period of correlation between crypto and conventional markets.

The speed of liquidations highlights the fragility embedded in overleveraged positions during volatile periods. Even moderate price movements can trigger significant forced selling when leverage ratios reach extremes.

Market infrastructure must absorb these shocks repeatedly as participants rebuild positions after each washout.

Binance Open Interest Surges 31% Since October Event

Current open interest on Binance has climbed to 123,500 BTC, surpassing pre-October 10 levels. The metric is measured in Bitcoin terms rather than notional value to eliminate price fluctuation distortions.

This methodology provides clearer insight into actual investor exposure trends.

Open interest had collapsed to 93,600 BTC immediately following the October event. The subsequent recovery represents roughly 31% growth over the intervening period.

The rebound signals renewed confidence among derivatives traders despite recent volatility.

The measurement approach neutralizes impacts from Bitcoin’s price movements on notional open interest calculations.

Tracking positions in BTC terms reveals underlying behavioral patterns more accurately. Investors have steadily rebuilt their market exposure through futures and perpetual contracts.

The data indicates that lessons from the October liquidation event have not significantly dampened leveraged trading activity.

Participants appear willing to accept similar risk profiles despite recent capital destruction. The cycle of leverage buildup and violent unwinding continues with remarkable consistency across multiple episodes.

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