$1.17 billion in bitcoin longs liquidated – BTC and Ethereum bullish nonetheless

Data provided by ByBt.com shows that this morning the BTC/USD market liquidated long contracts worth $1.17 billion.

The stop losses were triggered when the bitcoin price fell below $30,000 amid a corrective spot market move.

Figures show that long position holders on Binance alone lost $339.37 million, followed by Huobi, whose traders took losses worth $258.1 million.

This finally marked the worst one-day liquidation of the Bitcoin Superstar market since November 25 last year. On that day, long traders had lost about $999.52 million.

Still bullish

None of the recent large long liquidations have yet resulted in a broader downtrend. Spot traders remained bullish on bitcoin over the long term due to its increasing importance as a hedging asset among mainstream financial institutions and corporations.

After Nov. 25, for example, the BTC/USD exchange rate climbed as much as 114 percent to reach a record high of $34,810. Many analysts admitted that institutional investors have recently taken advantage of price drops triggered by retail investors to buy bitcoin en masse.

As a result, the flagship cryptocurrency has rallied exponentially after Bitcoin developed concrete supports near $16,200, $17,650, $22,000 and most recently $27,500.

Thus, a pseudonymous chartist said on Monday that the cryptocurrency is moving from weak to strong hands – those who prefer to hold their investments for the long term. In turn, the so-called „HODLING“ sentiment comes from a supportive macroeconomic outlook.

People view Bitcoin as a safe haven against falling bond yields and the U.S. dollar. That’s also why billionaire investors like Paul Tudor Jones and Stan Druckenmiller have incorporated cryptocurrency into their portfolios. It also explains why MicroStategy, Square, Ruffer Investments, MassMutual and others have decided to invest in Bitcoin.

Ethereum bullish sentiment

Ethereum surged over the weekend and managed to take the $1,000 mark. Several well-known analysts are extremely bullish about its future.

For example, trader Cryptobirb published a tweet today saying that the Ethereum price can reach $2,000 by March/April 2021.