Crypto Shorts Suffer $147 Million Squeeze As Bitcoin Returns Above $63,000
19 Setembro 2024 - 10:30PM
NEWSBTC
Data shows the cryptocurrency sector as a whole has witnessed a
high amount of liquidations following the volatility Bitcoin and
others have gone through. Bitcoin Has Recovered Back Above The
$63,000 Level Following the news of the US Federal Reserve cutting
back on interest rates, Bitcoin has responded positively, with its
price breaking above the $63,000 level. Related Reading: Will
Bitcoin Bullish Swing Continue? Top Analyst Says Yes The chart
below shows what the asset’s recent performance has looked like.
The graph shows that after this 5% jump over the last 24 hours, the
cryptocurrency is no longer far from reaching the highest level
observed in August. As is generally the case, the rest of the
digital asset sector has also enjoyed a surge as this latest
Bitcoin rally has occurred. Some of the altcoins like Solana (SOL)
and Avalanche (AVAX) have even managed to notably outperform the
number one coin. A consequence of all the volatility in the market
has been that the derivatives side has gone through some chaos.
Crypto Derivatives Market Has Observed $201 Million In Liquidations
Today According to data from CoinGlass, a large amount of
liquidations have occurred in the cryptocurrency derivatives market
during the last 24 hours. “Liquidation” here refers to the forceful
closure that any open contract undergoes after amassing a certain
percentage of loss. Here is a table that breaks down the data
related to liquidations in the sector over the past day: As
displayed above, the cryptocurrency market as a whole has seen more
than $201 million in liquidations during the last 24 hours. Out of
these, about $147 million of the flush has involved short
contracts. This means the short investors were responsible for
almost three-fourths of the total liquidations. This is natural
because Bitcoin and other assets have seen a significant surge
during this period. A mass liquidation event like today is
popularly known as a “squeeze.” As the latest squeeze has mainly
involved the shorts, it would be called a short squeeze. Events
like these aren’t particularly rare in cryptocurrency because most
coins can act volatilely and speculation is generally quite active.
Compounded by the fact that many speculators aren’t afraid to touch
leverage, large liquidations can easily occur. Related Reading:
Dogecoin Miners In Accumulation Mode, But Is This Really Bullish?
As for how the latest squeeze has looked regarding the contribution
from the individual symbols, the heat map below reveals it. As is
the norm, Bitcoin has topped the charts with $78 million in
liquidations, more than twice the $36 million Ethereum registered
in second place. Solana has seen the most liquidations of the rest
at $11 million. Featured image from Dall-E, CoinGlass.com, chart
from TradingView.com
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