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As Bitcoin approaches the $70,000 threshold, the liquidation risks on mainstream exchanges are coming into focus. According to data from an on-chain analysis platform, if Bitcoin rises from its current level and surpasses $70,000, a short position worth approximately $828 million could be liquidated all at once.
On the other hand, a downside scenario also presents concerns. If Bitcoin adjusts to around $66,000, there is a high likelihood that long positions totaling about $1.069 billion will be liquidated as well.
The presence of liquidation pressures in both directions creates an environment where market participants need to exercise caution. Considering the current composition of contract positions on major CEXs, the risk of Bitcoin's volatility expanding even further cannot be ruled out.