Short-term liquidations rise as Bitcoin recovers over $ 20,000
Bitcoin had lost its footing over $ 20,000 at the beginning of the week, triggering uncertainty among investors who had previously believed that the price of bitcoin was in an improvement trend. This decline led to more sales in the area, albeit to a lesser extent than previously registered. With the digital asset now embarking on another recovery trend, traders who had bet on its ability to move upwards find themselves in very unpleasant situations.
Bitcoin Short traders suffer from losses
Bitcoin had begun to recover shortly after the CPI had shown that the US inflation rate had reached a new 40-year high. At 9.1%, it was the highest figure ever recorded since 1981, and this had led investors to look at other options to protect wealth from being eaten in by inflation. The result had been an influx of new money into the bitcoin market.
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The recovery had seen that many traders who had bet against bitcoin, suffered losses. Data from Coinglass shows that in the last 24 hours, almost $ 200 million in liquidations have been registered, and the majority of the liquidations had been from card dealers. In total, more than 57,800 traders have been liquidated, and with a percentage of 83.91%, more than 48,000 traders who focused on improving the crypto market have suffered losses.
BTC price recovers above $20,000 | Source: BTCUSD on TradingView.com
Even as time has passed, the liquidations have not subsided. In the last 12 hours alone, the liquidation figures have reached over 54 million. At the time of writing, the last four hours had seen liquidations of 21 million dollars, and this is expected to increase as recovery continues.
Ethereum takes the lead
In most cases, when calculating market liquidations, bitcoin always takes the lead. However, this is not the case this time as another has taken the lead in liquidations. Ethereum’s recovery in the last day had been as dramatic as for bitcoin, and short traders were caught in the wave.
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The second largest cryptocurrency by market value accounts for the majority of liquidations registered on the last day. It has seen more than 72.64K ETH liquidated, amounting to more than $ 90 million. Bitcoin, which usually leads the flock, has only seen half the value of liquidations in the same time period.
ETH liquidations ramp up | Source: Coinglass
The same is true on a 12-hour basis, although bitcoin is catching up in this regard. Ethereum continues to lead, but by a much smaller margin.
Other cryptocurrencies that have recorded high liquidations in the last day include MATIC, SOL and AAVE with $ 8.52 million, $ 5.93 million and $ 2.81 million, respectively.
Featured image from Financial Times, chart from TradingView.com
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