Open Interest and Liquidation Event

During the early hours of the morning on Aug. 1, open interest in Bitcoin increased on Binance, moving from 106,000 Bitcoin to 111,000 Bitcoin, a change of roughly $145 million. Subsequently, funding rates began to drop, triggering liquidations alongside.

Long Liquidations

The impact was felt significantly, with roughly $12 million in long liquidations occurring. This event represents the most substantial liquidation since July 24 and showcases the market’s volatility.

The $29,000 Price Level and Leverage

Around the $29,000 price mark, either above or below this level, there is a serious amount of leverage that could be liquidated, even up to 100x. If Bitcoin were to experience a further drop, it could lead to a more pronounced price decline, as leveraged positions would be liquidated. This scenario highlights the risky nature of highly leveraged positions and the possible cascading effect on Bitcoin’s price.