SpaceX stock (SPCX) falls below opening price after rough day

The SpaceX share is experiencing a turbulent period. The price of the SPCX perpetual contract is falling so sharply that liquidations exceed $76 million in 24 hours, making it the third largest liquidation pool in the crypto derivatives market, surpassed only by Bitcoin and Ethereum.

Price briefly drops below opening price of $150

According to data from Coinglass, the SPCX price hit a low of $147.17 in the past 24 hours. That is just below the opening price of $150 that the SpaceX share set on its first trading day. At the time of writing, the price is recovering slightly and SPCX is trading around $156. but that still represents a loss of approximately 7.62% compared to the daily high of $169.25.

The ongoing decline in SpaceX’s share price is the main cause of the selling wave. Nevertheless, the price remains well above the IPO price of $135. indicating that despite the pressure, there is still a significant premium on the share.

SPCX ranks third in derivatives liquidations

The scale of the liquidations is impressive. With more than $76 million in 24 hours, SPCX positions itself behind only Bitcoin and Ethereum in the ranking of largest liquidation volumes within crypto derivatives. That is remarkable for a relatively new tokenised share that has only been on the market for a short time.

The situation around SPCX fits into a broader trend in which traditional financial assets are making their way to the crypto market through tokenisation, with all the volatility that entails. Traders who were long on the expected price rise of SpaceX are now being hit hard by the sustained downward movement. The fact that liquidations are running so high points to a large number of leveraged positions being liquidated in a short period of time.