Bitcoin’s Rally Results in $400 Million in Liquidations, Mostly from Short Positions
The cryptocurrency market has experienced a strong rally, contributing over $100 billion to its total market capitalization since October 23. In the last 24 hours alone, this upward momentum has led to liquidations exceeding $400 million, with more than $300 million originating from short positions.
Bitcoin (BTC) has been the main driver of this rally, with a price increase of over 12% in just one day. The biggest losers in this scenario were Bitcoin short sellers, as more than $180 million worth of short positions were liquidated out of the total $222 million in BTC liquidations.
Ethereum (ETH) traders also suffered losses of $60 million during the day, with $44 million coming from speculators betting on lower prices, according to data retrieved by Finbold on October 24 from CoinGlass.
Interestingly, the majority of liquidations occurred within the last 12 hours, with $317 million being liquidated from both short and long positions. Out of this amount, 76% ($241 million) came from short sellers who got ‘REKT’.
Derivatives Volume Surges as Short Sellers Face Consequences
Amidst this bloodbath for short sellers, the top three cryptocurrencies dominating the derivatives market have seen significant increases in trading volume within the past 24 hours.
Bitcoin volume has surged by 221%, while Ethereum and XRP derivatives volume have both increased by 108% during this period. They recorded volumes of $106 billion, $31 billion, and $2.7 billion respectively during this rally.
It is worth noting that a total of 95,000 traders were liquidated, with the largest single liquidation order occurring on Binance. This short seller was liquidated in a $9.98 million order on the BTC pair against Tether USD (USDT).
Hot Take: The Crypto Market Soars, Leaving Short Sellers in the Dust
The recent rally in the cryptocurrency market has brought about significant gains, but it has also resulted in heavy losses for short sellers. Bitcoin’s surge has been particularly noteworthy, causing major liquidations and leaving short sellers with millions of dollars in losses.
This rally has also led to a surge in derivatives trading volume for Bitcoin, Ethereum, and XRP. Traders are actively participating in the market as they take advantage of the upward momentum.
However, it is important to remember that volatility remains a constant factor in the crypto market. While some traders may profit from these rallies, others may face significant losses. It is crucial to stay informed and make well-informed decisions when navigating this ever-changing market.
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