Huge Bitcoin and Ethereum Shorts Liquidated for Over $100M Within Hours
- The cryptocurrency market saw a massive liquidation of shorts on Tuesday.
- Over $127.98 million was liquidated in a span of hours.
- Bitcoin and Ethereum shorts were liquidated.
The world of cryptocurrency experienced a tumultuous Tuesday as traders scrambled to cover their shorts amidst a surge in bullish sentiment towards Bitcoin and Ethereum. In just a matter of hours, over $127.98 million in shorts were liquidated, sending shockwaves through the market.
As the dust settles and the market begins to stabilize, experts continue to debate the implications of this historic event. Some see this as a sign of the cryptocurrency market’s resilience, while others warn of the dangers of such unpredictable swings.
Million of Shorts Liquidated
The cryptocurrency market experienced a significant blow on Tuesday as a huge wave of shorts were liquidated, resulting in the loss of over $127.98 million within a few hours. Bitcoin and Ethereum shorts took the worst hit. Analysis of the total liquidation revealed that about $77 million worth of longs and shorts were linked to BTC, $25 million to Ethereum, and the rest to various other altcoins.
For those unfamiliar with crypto trading, a long position involves purchasing an asset in the hope of selling it later at a higher price, while a short position is the act of selling an asset in anticipation of buying it back later at a lower price. These positions have become increasingly crucial for traders looking to navigate the ups and downs of the volatile crypto market.
Over $60 million in shorts were liquidated on BTC alone, with the majority of liquidations taking place on OKX, Binance, and Huobi. This loss of money is the result of traders betting against the price of Bitcoin and Ethereum being forced to close their positions. As a consequence, this loss can make traders more cautious and less likely to bet against the price of Bitcoin and Ethereum in the future.
Recent Major Crypto Events
The world’s largest cryptocurrency, Bitcoin, saw a gradual climb in price after BlackRock filed with the Securities and Exchange Commission (SEC) to introduce a BTC Spot ETF. However, on June 20th, it staged a massive rally and spiked to nearly $28,800, according to CoinGecko data.
— Anil ⚡ (@anilsaidso) June 15, 2023
The cryptocurrency market is highly volatile, and prices can fluctuate quickly. Therefore, traders should always exercise caution when investing in cryptocurrencies and only invest what they can afford to lose.