The past 24 hours witnessed a significant shakeout in the crypto market with $183 million in short positions liquidated due to a sharp rise in prices for major cryptocurrencies like Bitcoin and Ethereum.
What Happened?
The crypto market experienced a sudden surge, leading to $183 million in liquidations of short positions. This movement caught many bearish traders off guard, as it resulted from rapid price increases in Bitcoin and Ethereum.
Who Got Hit Hardest?
The majority of liquidations were reported from over-leveraged short positions on leading exchanges, with Binance facing the highest volume of liquidated trades. Traders holding short positions in Bitcoin and Ethereum faced significant losses, making up most of the $183 million wiped out.
What Comes Next?
Short squeezes often act as catalysts for broader market rallies. With bearish positions cleared, bullish sentiment might rise temporarily. However, experts advise caution as external factors such as economic data and regulatory news can still affect market momentum.
The $183 million in short liquidations highlights the high volatility of the crypto market and underscores the need for cautious trading.
