In the last 12 hours, short trades accounted for the vast majority of all liquidation losses.
As the crypto market recovered from yesterday’s support levels, more than $95 million in short positions were liquidated in the last 12 hours.
According to statistics from analytics tool Coinglass, around 88 percent of traders betting against a growth in crypto prices lost money as exchanges cancelled leveraged positions due to a partial or whole evaporation of the trader’s initial margin.
Short losses on OKX totaled $44 million, the largest of any crypto exchange, followed by $22 million on Binance and $11 million on Bybit, according to statistics.
Bitcoin futures were liquidated for $47.45 million in the last 12 hours, the most of any major cryptocurrency. Ether futures lost $22 million, followed by LUNA with $12 million in losses.
Cryptocurrencies with an emphasis on privacy made a rare showing. Futures trading Monero’s XMR and Zcash’s ZEC lost $1 million in the last 24 hours as the two currencies’ prices soared by up to 25%. The growth exceeded the broader market, which rose 6% during the same time period. In the European morning, bitcoin was trading at $41,000, up from $38,000 on Tuesday, as a US presidential executive order on cryptocurrencies backed “responsible innovation” in the sector. President Joe Biden is largely expected to sign the executive order on Wednesday.
Short position losses accounted for $114 million in liquidations, affecting approximately 46,700 individual trading accounts, according to data.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.