Nearly $100 Million in Bitcoin Short Positions Liquidated in 24 Hours
Data from Coinglass reveals that centralized crypto exchanges saw approximately $100 million in bitcoin short positions being liquidated within the past 24 hours.
Increased Volatility Causes Wipeout of $122 Million in Bitcoin Positions
The bitcoin market experienced heightened volatility, resulting in the fluctuation of prices around the $44,000 mark. As a result, about $122 million worth of bitcoin positions were wiped out, with $96 million coming from shorts.
Short Liquidations Reach Over $260 Million in December
According to The Block’s Data Dashboard, short liquidations have amounted to over $260 million since the beginning of December. This includes a +5.03% increase in the first five days.
Bitfinex Analysts Remain Bullish on Bitcoin for 2024
Despite ongoing volatility, Bitfinex analysts maintain a bullish outlook for bitcoin in 2024. They attribute the recent rally to two factors: the upcoming bitcoin halving in April 2024 and the potential approval of a spot bitcoin ETF.
“While some expect a price of $100,000 or higher, we believe bitcoin will reach between $60,000 and $75,000 by the end of next year. This range should be easily attainable considering this year’s trading range bottomed out around $16,000,” shared Bitfinex analysts.
Increase in Short Liquidations Across Cryptocurrency Market
The entire cryptocurrency market has witnessed a significant rise in short liquidations during December. Exchanges have recorded $614 million in short liquidations since the start of the month.
Trading volume for bitcoin futures has also seen an uptick, with November’s volume reaching $888 billion. In just six days of December, trading volume stands at $213 billion.
Bitcoin Sees 175% Appreciation in 2021
Since the beginning of the year, bitcoin has experienced a remarkable 175% increase in value. As of Wednesday, it was trading at $43,659, marking a 5% gain.
Hot Take: Bitcoin Shorts Liquidated as Volatility Persists
The recent surge in bitcoin shorts liquidations reflects the continued volatility in the cryptocurrency market. With nearly $100 million being wiped out within 24 hours, traders are facing significant risks and potential losses. However, some analysts remain optimistic about bitcoin’s future performance, citing upcoming events such as the halving and the possibility of a spot bitcoin ETF. While uncertainty persists, it is essential for traders to stay informed and adapt to market conditions to mitigate risks and maximize potential gains.
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