With its sudden surge, Bitcoin surprised everyone. Bitcoin, which had been below $40,000 over the last week, made a comeback with an amazing rally that reached $44,000. The market was taken by surprise, and liquidations were the norm. The short-term traders were the ones who suffered the most as hundreds of thousands of dollars have been sold in just a day.
Bitcoin Liquidations Run Amok
The market has seen short-term traders dominate for quite some time due to the trending low value of the cryptocurrency. This situation was made more difficult by the Ukraine-Russia crises. Bitcoin managed to maintain its position around $36K-$38K without falling too far below that level. The recovery however took the market off-guard on Monday.
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Bitcoin had risen to $44,000 on Monday in what could be called a rapid ascent. Short traders caught by surprise when this move occurred in just minutes. This movement resulted, short traders being caught off guard by millions of dollars worth of short positions and the removal on all major exchanges of $40K price walls.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
Over $100 million in bitcoin positions have been liquidated within the past 24 hours. As the market continues its upward momentum, approximately 50% of that volume has been liquidated in the last twelve hours. BTC liquidations totaling $147million have taken place in the last 24 hours. This figure is dominated by shorts, but there were millions of long liquidations.
Altcoins Not Left Out
In addition to bitcoin’s large liquidations, altcoins also have seen significant liquidations within the same time frame. Bitcoin has seen the largest number of liquidations, but this is to be expected since it is one the most valuable assets in the sector. Altcoins, however, have not been immune to the onslaught. They have seen liquidations totaling over $100 millions.
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Ethereum has more liquidations than any altcoin due to the fact that $58 million was recorded for it over the course of one day. The same as Bitcoin, this figure is largely due to shorts. ETH also rose towards $3,000.
Source: Coinglass. Crypto liquidations exceeding $300 Million in 24 Hours| Source: Coinglass
Luna has finished third in liquidations. Luna, the native token of Terra’s blockchain, had witnessed $14 million worth of liquidations within the last 24 hours. This includes more than $6 million that were made in just the 12 hours. Altcoin has seen a more than 20% increase in value in the past day. This is the biggest rally in recent history.
Featured image taken from NationalWorld. Also chart from Coinglass.com.