Data shows the crypto shorts have observed a high amount of liquidations in the past day as BTC has seen a sharp rally towards $31,000.
Crypto Futures Market Has Seen High Liquidations In The Past Day
The past day has been volatile for the crypto market as Bitcoin and other assets have seen some sharp bullish momentum. As is usually the case, this volatility has resulted in some chaos on the futures side of the sector.
The below table shows how the liquidations have looked in the crypto futures market today:
It would appear that a large amount of liquidations have occurred today | Source: CoinGlass
As displayed above, the crypto futures market as a whole has seen liquidations of almost $120 million in the last 24 hours. Out of these, a little under $86 million of the liquidations were of short contracts.
Most of the volatility in this period has come from assets around the sector popping off so it makes sense that the shorts would bear the majority of the brunt. Mass liquidation events are popularly called “squeezes,” so since this liquidation event majorly involved the shorts, it would be an example of a “short squeeze.”
From the table, it’s also visible that most of this short squeeze ($65 million) occurred within the past twelve hours alone. This again lines up with price action, as this period is where the volatility was the most pronounced.
Now, here is how the liquidations in the past day were divided among the different symbols in the sector:
The distribution of the liquidations b
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Author: Keshav Verma
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