The sudden move forced liquidations of futures worth $23 million on BiMEX, of which $10 million happened in the 60 minutes to 08:00 UTC and the remainder in the following 30 minutes, according to data provided by the crypto derivatives research firm Skew.
Bitcoin’s price jumped close to $500 early on Thursday, triggering liquidations worth millions on crypto derivatives exchange BitMEX.
Bets were bearish
Tracking S&P 500 futures
Bitcoin continues to move roughly in tandem with futures tied to Wall Street’s equity index, the S&P 500.
The cryptocurrency fell from $6,900 to $6,600 during Wednesday’s U.S. trading hours, as the stock markets put in a negative performance on the back of a record drop in consumer spending, as represented by retail sales.
Sentiment remained weak early on Thursday, with Asian markets tracking Wall Street lower. However, the S&P 500 futures erased losses and rose by 0.8% after European stocks opened on a positive note.
Risk sentiment has reportedly stabilized due to world leaders taking steps to reopen economies hammered by the coronavirus outbreak.
Bitcoin followed suit by printing highs above $7,100 and taking the month-to-date gains to 9.6 percent. At press time, the cryptocurrency is changing hands near $7,040, representing a 6 percent gain on the day.