The Bitcoin price crashed to $47,000, causing short liquidity chaos. The losses suffered by these short traders, who clearly expected that the market’s previous trend of low momentum would continue, have reached hundreds of millions in the crypto market. The crypto market is in a recovery phase and the bloodbath continues.
Bitcoin Traders Rekt
Over the last week, Bitcoin has been in a steady but slow recovery mode. This slow trend would soon be stopped as bitcoin’s price surged sharply on Sunday night. On Monday, the trend was continued, with bitcoin breaking the $47,000 mark, making it the third-highest price for the digital asset in three months.
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Short traders were almost instantly liquidated due to the price rise. The traders with millions of dollars in bitcoin trading would lose many millions even before Monday’s opening.
Source: Coinglass| Source: Coinglass
Bitcoin led in liquidation losses, as usual. In just minutes after the price rise, bitcoin saw millions of shorts evaporate. As of this writing, more than $60million worth of shorts have been liquidated within the last 12 hours. These numbers look even more grim when you consider that there have been over $169 million worth of liquidations in the past 24 hours.
Liquidations Rock Crypto Market
A lot of cryptocurrency traders were burned within the past 24 hours. The most notable moment was the time when bitcoin’s price had surpassed $45,000. At this point, bears held significant resistance. It is likely that bitcoin will drop again at the same point as in previous months. Traders will bear the brunt because over $100,000,000 in BTC/ETH shorts were destroyed in just five minutes.
BTC surges past $47,000 | Source: BTCUSD on TradingView.com
Coinglass data has shown that there have been over $187 in liquidations on the cryptocurrency market within the last 24 hours. In the past 24 hours, more than $432million in liquidations has occurred. These liquidations are almost as competitive as one another, with Bitcoin and Ethereum accounting for the largest proportion.
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The report also showed that total liquidation of 78.079 traders occurred in one day. Bitmex was the most liquidated company, with a total of $10 million.
Featured image by Futurity. Charts from Coinglass.