Bitcoin is experiencing a market cascade that has seen prices drop down to below $42,000. Bitcoin derivatives liquidations have been massive in the past few days. According to data from Coinglass, more than $500 million worth of Bitcoin liquidations has occurred in the last 3 days.
Despite the massive liquidations, data suggests that more investors are entering the derivatives market. This was noted by Colin Wu, a Chinese journalist with the moniker Wu Blockchain on Twitter. Wu pointed to data from blockchain analytics firm Crypto Quant that suggests that investors were increasing their Bitcoin exposure and taking on high leverage.
