In the past 48 hours, Bitcoin’s (BTC) price has dropped by $13,360 and more than $2.6 billion worth of futures contracts have been liquidated. When including altcoins, the total sum of liquidations equaled $5.9 billion.
After marking a record-high open interest at $19.5 billion on Feb. 21, the metric has stabilized at $16.5 billion. This means that half of the terminated leverage positions have been reopened.
According to the top traders’ long-to-short data and various funding rate indicators, retail traders took the largest hit.
Top traders bought the dip
The top traders’ long-to-short indicator is calculated by using clients’ consolidated positions, including spot, margin, perpetual and futures contracts. Unlike the futures premium or options skew indicators, this metric gathers a broader view of professional traders’ effective net position.
Top traders long-to-short ratio. Source: Bybt.com
Despite the discrepancies between crypto exchange methodologies, analyzing changes over time provides valuable insights.
Top traders at Huobi held a 0.81 long-to-short ratio on Feb.