Data Shows Cryptocurrency Rebound Punishes Bears

The recent surge in Bitcoin and other cryptocurrencies has resulted in significant short liquidations, impacting bearish investors.

Crypto Sector Has Just Witnessed A Mass Liquidation Event

Data from CoinGlass indicates a substantial amount of liquidations within the cryptocurrency derivatives market. “Liquidation” refers to the forced closure of open contracts when losses surpass platform-defined thresholds.

Liquidation Statistics

• Over half a billion dollars liquidated in the past day.
• 73.7% of these liquidations, totaling $371 million, originated from short investors alone.

The Shift Following Market Events

The surge in liquidations coincided with a rebound in Bitcoin and other cryptocurrencies, following news of a ceasefire between Israel and Iran. Previously, U.S. strikes on Iranian nuclear sites led to a market crash and long liquidations. Now, however, bears are the ones at risk.

Leading Liquidations

Bitcoin and Ethereum dominate the liquidation statistics, with Ethereum witnessing $168 million in liquidations, surpassing Bitcoin’s $153 million. This anomaly may stem from Ethereum’s larger price increase of 7% compared to Bitcoin’s 3.5%, possibly indicating heightened speculative interest.

Among altcoins, Solana ($29 million) and XRP ($13 million) reported much smaller liquidation figures, highlighting the significant difference in market capital.

Notable Exchange Activity

On the exchange Bybit, Bitcoin taker buy volume has surged. Data presented by CryptoQuant shows a spike above the 1 mark in the Bitcoin Taker Buy Sell Ratio, suggesting that long volume has overtaken shorts. Such trends on Bybit typically precede increases in Bitcoin’s price.

BTC Price

After climbing over the last 24 hours, Bitcoin has reached the $105,100 mark.

*Data sources: CryptoQuant.com, CoinGlass.com; Chart from TradingView.com.