The Bitcoin position of over 2 billion USD was liquidated, and the Ethereum Gas fee was as high as 1700 Gwei for a long time.
Written by: Ashwath Balakrishna, working at Delphi Digital, a cryptocurrency research organization
Translation: Lu Jiangfei
The just-concluded Black Wednesday (May 19) caused heavy losses for cryptocurrency investors. The well-known crypto asset analysis agency Delphi Digital used four pictures to interpret some of the most noteworthy situations in the market on this day of great turmoil, including:
- On May 19, Deribit futures trading income shrank by 75%, and more than $2 billion in bitcoin positions were liquidated.
- The Ethereum Gas fee can reach 1700 Gwei for a long time
- Bitcoin exchange inflows hit the highest level since March 2020
Some notable phenomena
- Many people are not optimistic about Bitcoin’s bullishness. May 19 is the worst day for the market since March 2020.
- In the current turbulent market environment, more than $2 billion in Bitcoin positions (short and short) have been liquidated. Between the cryptocurrency perpetual contract and futures, the clearing capital exceeds 10 billion U.S. dollars.
- As BTC market demand tends to dry up, single-month futures trading based on annualized returns has seen a relatively large discount. Deribit Exchange’s response is most obvious, with a return rate of -75%.
- This phenomenon occurs mainly because a large number of selling on the entire futures market causes the futures price to be lower than the spot price (trading at a spot discount).
- The gas cost briefly exceeded 2000 gwei, and then it lasted between 1500 gwei and 1700 gwei for about an hour.
- With the complete collapse of the cryptocurrency market, the DeFi liquidation problem suddenly appeared in every corner, and the prelude to the gas war between liquidators and arbitrageurs also kicked off.
- In just one hour on May 19, the inflow of Bitcoin on the exchange exceeded 20,000 BTC, which is the highest single-day and single-hour Bitcoin inflow since Black Thursday, March 12, 2020.
- Although this trend is not a certain bottoming signal, it is likely to be a signal that the market surrenders and gets rid of “weak hands”.
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