The recent rise of Bitcoin to $107,000 has acted as a catalyst for a massive liquidation event in the crypto market.
Bitcoin and Short Liquidations
In just one hour, Bitcoin recorded an unprecedented short-to-long imbalance of 11,060%. During this time, $7.11 million was liquidated, with $7.05 million coming from short positions, while losses on long positions barely reached $63,740.
Overall Market Losses
According to CoinGlass, a total of $169.24 million in liquidations swept through the crypto market in the last 24 hours. Short positions again took the brunt of the losses, totaling $101.61 million compared to $67.64 million in long positions.
Rapid Shift in Trader Sentiment
Over 76,000 traders were liquidated in the past day. Sentiment has shifted quickly, as what seemed like a tired market just days prior has suddenly turned into a liquidation trap for bears.
The sharp liquidations and rapid shifts in market sentiment highlight the fragility of leveraged positions, posing risks for traders.
