Crypto Short Squeeze Alert: Traders are Now Shorting These Coins
The cryptocurrency market has experienced a downward trend in its market cap, leading traders to capitalize on the ongoing downturn by shorting their positions. This shift in sentiment has increased the likelihood of liquidations, causing prices to rise. Santiment, a behavior analytics platform, notes that the shorting of cryptocurrencies may signal a potential turnaround for bullish investors.
Key Points:
– Increased shorting activity has been observed in well-known cryptocurrencies such as THORChain, VeChain, The Sandbox, Kava, Binance Coin, and Axie Infinity.
– High short-funding rates suggest fear, uncertainty, and doubt (FUD) among investors, potentially leading to a short squeeze.
– The liquidation of short positions can drive up demand and prices, creating a self-perpetuating cycle of rising prices.
– The global crypto market cap has decreased by over 2.1% in the past 24 hours, losing more than $25 billion in market cap.
Hot Take:
With the prevailing fear and uncertainty in the cryptocurrency market, traders are seizing the opportunity to short their positions. This behavior has the potential to trigger a short squeeze, driving up prices and creating a cycle of rising prices. However, it’s important to note that investing in cryptocurrencies carries risks, and this information should not be considered investment advice.
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