Short Traders Get the Short End Of The Stick As Bitcoin Breaks $47,000
Bitcoin price has shattered $47,000 and has left in its wake the bloodbath that is short liquidations. These short traders that obviously expected the previous market trend of low momentum to continue have now incurred hundreds of millions of dollars in losses in the crypto market, and in a very short time too. The bloodbath has not eased up either since bitcoin is still firm in its recovery trend.
Bitcoin Traders Get Rekt
Bitcoin had been on a slow but steady recovery trend over the past week. However, the weekend would quickly put a stop to this slow trend as the digital asset had surged drastically on Sunday night. This trend continued into Monday, seeing the cryptocurrency break the $47,000 price level, setting a three-month high record for bitcoin.
Related Reading | Bitcoin Retakes Robust Position As Price Nears $45,000
This increase in price had seen short traders liquidated almost immediately. These traders who had millions in the market riding on bitcoin continue to fall would see themselves lose millions before the trading market open on Monday.
BTC liquidations reach $169 million | Source: Coinglass
As usual, bitcoin led the pack in terms of liquidation losses. The digital asset saw tens of millions of shorts liquidated in just a matter of minutes following the price surge. In total, there have been more than $60 million in shorts liquidated in the past 12 hours as of the time of writing. On the 24-hour scale, the numbers are even grimmer given that more than $169 million in liquidations have been recorded.
Liquidations Rock Crypto Market
On a broader scale, a lot of crypto traders have been burned in just the last 24 hours ago. Most notable was when the price of bitcoin had successfully broken past $45,000. This point is where bears mounted significant resistance and it was expected it will fall once again from this point like it has the past three months. But traders would bear the brunt of this given that over $100 million in BTC and ETH shorts were liquidated in a mere five minutes after this.
BTC surges past $47,000 | Source: BTCUSD on TradingView.com
Data from Coinglass shows that over $187 worth of liquidations has been recorded in the crypto market in the last 12 hours. While more than $432 million in liquidations have happened in the last 24 hours. Naturally, Bitcoin and Ethereum make up the majority of these liquidations, almost rivaling each other.
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It also shows that a total of 78,079 traders have been liquidated in this one-day period. While Bitmex saw the largest single liquidation order which was valued at $10 million.
Featured image from Futurity, charts from Coinglass and TradingView.com