After Bitcoin fell below $70,000, its decline extended further, briefly dipping to $61,309, a near four-month low. At the time of writing, BTC had rebounded to around $63,306, but was still down 4.7% on the day. Amid the price pullback, volatility in the derivatives market increased significantly, with large whale position adjustments and large-scale liquidations occurring simultaneously.
A whale closed out a short position of 1400 BTC.
On-chain tracking platform On-chain Lens disclosed that the address "pension-usdt.eth" has closed out all short positions of 1,400 BTC, with a notional value of approximately $93.8 million. After the transaction, the trader realized a profit of approximately $3.56 million.
The report mentioned that this whale had previously won 21 consecutive trades, and after closing its positions, it shifted some of its holdings to ETH. The increased profits for short sellers reflect that selling pressure still dominates the market recently.
Market bears are in control
As Bitcoin continues to weaken, new short positions are also increasing in the market. Data shows that the BTC long/short ratio has dropped to 0.94, meaning that the number of short positions is currently higher than the number of long positions, and traders' overall sentiment is cautious.
In this structure, price declines are more likely to trigger chain reactions, especially during periods of high leverage. The continued dominance of short sellers also makes short-term rebounds face greater resistance.
Long position liquidations rose to $634.6 million.
In contrast to the profits from short selling, long positions suffered even greater losses. Onchain Lens stated that Garret Jin's 5x leveraged long position in BTC is currently showing a paper loss of over $17 million. Despite this, he has not closed the position and has paid approximately $153,000 in funding fees to maintain it.
According to CoinGlass data, the total amount of Bitcoin-related liquidations rose to $752 million in the past 24 hours, of which long liquidations accounted for $634.6 million, representing the vast majority.
Large-scale long liquidation typically signifies passive deleveraging in a rapid market decline. If selling pressure cannot be alleviated in the short term, price volatility may continue to remain high.
