Benzinga – In the past 24 hours, the cryptocurrency market witnessed significant liquidations of Bitcoin (CRYPTO: BTC) shorts, with over $24 million worth being wiped out, according to the latest data from CoinGlass.
What Happened: The liquidations affected a total of 26,390 traders, resulting in a staggering total liquidation value of $62.00 million.
The largest single liquidation order occurred on the popular cryptocurrency exchange Bitmex, where a position valued at $5.15 million in XBT, the trading symbol for Bitcoin, was liquidated.
Overall, both long and short positions totaling $32 million in Bitcoin were liquidated during this period.
When traders take a short position, they are essentially betting on the price of a cryptocurrency to decrease. In simple terms, they borrow the cryptocurrency, sell it at the current market price, and plan to buy it back later at a lower price, thus profiting from the price difference. Shorting allows traders to profit from downward price movements.
Conversely, when traders take a long position, they are expecting the price of a cryptocurrency to increase. They purchase the cryptocurrency at the current market price with the intention of selling it at a higher price in the future.
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Why It Matters: In the midst of these market movements, JPMorgan, the largest bank in the United States based on asset size, revealed that it is in the early stages of developing a blockchain-based digital deposit token for cross-border payments and settlements. The bank has reportedly established most of the necessary underlying infrastructure for the token. However, regulatory approval from U.S. authorities is still pending before the token itself can be launched, as reported by Bloomberg on Friday.
Deposit tokens, as described by JPMorgan, are digital assets that represent transferable deposit claims against a commercial bank.
Photo Courtesy: Bitcoin Photo by 99Art on Shutterstock
Price Action: At the time of writing, BTC was trading at $26,267.75, up 1.42% in the last 24 hours, according to Benzinga Pro.
Read Next: Bitcoin, Ethereum, Dogecoin Spike After JPMorgan Enters Blockchain Deposit Tokens: Analyst Says BTC Is ‘Going Higher Soon’
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