In the last 24 hours, a jaw-dropping $171 million in short positions have been liquidated, marking a significant turnaround in the crypto market. Just days ago, Bitcoin (BTC) plunged to a low of $53,300, driven by heavy selling pressure from Mt. Gox and the German government.
A whopping $171 million in shorts has been liquidated in the past day, causing a stir in the market. Bears are feeling the heat as a massive $263 million in long positions were also liquidated during Bitcoin’s drop from $62,000 to $53,300. This sudden decline caught many off guard and shattered bullish expectations, making it the second-largest liquidation event in the past fortnight. The previous peak in liquidations took place in April, three months ago.
As Bitcoin begins to bounce back, short sellers are now facing the music. Currently trading around the $58k mark, Bitcoin has seen a 2% increase in the last 24 hours. It’s astonishing that $171 million was liquidated despite this modest uptick. The liquidation of short positions points towards a swift market recovery, blindsiding bearish traders. Such high liquidation levels typically act as a reset button for the market, restoring investor confidence and allowing for stabilization.
The recent market volatility serves as a stark reminder of the risks and rewards associated with crypto trading. While the initial drop led to significant losses for long positions, the subsequent rebound has left short sellers licking their wounds. Investors are now cautiously observing the situation, hoping for a period of tranquility and steadiness after the rollercoaster ride of the past week.
