The previous twenty-four hours have seen approximately $400 million worth of Bitcoin and other major cryptocurrencies being liquidated by leveraged traders (at the time this article was written). This was caused by a large increase in the price of Bitcoin and other major cryptocurrencies.
As a result of the cryptocurrency market surprising many traders with its unexpected upward speed, the majority of the positions that were liquidated were short bets.
According to the data provided by CoinGlass, short positions in Bitcoin (BTC) saw a total of $177.15 million worth of liquidations, while short positions in Ethereum (ETH) saw a total of $42.23 million worth of liquidations.
The previous twenty-four hours saw a total of 94,168 traders on the cryptocurrency market get liquidated, with the largest single BTC liquidation order having a value of $9.98 million when executed on the BTCUSDT trading pair.
Notably, the entire amount of short positions that were liquidated across all cryptocurrencies amounted to $295.82 million, which compares to the amount of long positions that were liquidated, which was $106.46 million. This indicates that the bulk of the positions that were liquidated anticipated that prices would continue to fall.
The liquidations come as Bitcoin’s price has soared beyond $34,900 for the first time since May 2022, increasing by more than 10% in the previous twenty-four hours. Gains of substantial magnitude were also reported for Ether, Chainlink, and other important alternative cryptocurrencies.
Because of the market recovery, major short sellers, such as former Frog Nation CFO 0xSifu, now find themselves in a precarious position. With an average position price of $1,643, 0xSifu presently has more than $21 million worth of short ETH positions on Synthetix. If ETH prices keep going up to 1,926, his trade faces the possibility of being closed out.