The current recovery in the price of Bitcoin (BTC) has triggered another episode of liquidations in the industry. Current data of CoinGlass shows a shift in short traders, with market liquidations worth $311.83 million and more than 90,000 traders liquidated in total.
The current recovery in the price of Bitcoin (BTC) has triggered another episode of liquidations in the industry. Current data of CoinGlass shows a shift in short traders, with market liquidations worth $311.83 million and more than 90,000 traders liquidated in total.
The price of Bitcoin at the time of writing is set at $66,969.92, an increase of over 6% in the last 24 hours. For a digital currency that traded as low as $62,082.55 within the time period, recording this rally is a major boost, which has not favored short sellers.
Exactly $98.99 million worth of Bitcoin has been liquidated in the last 24 hours, with short liquidations worth $65 million and long liquidations worth $33.99 million. Ethereum (ETH) follows closely as the second most liquidated asset, with $86.4 million in liquidated coins. In the case of Ethereum, $48.27 million was liquidated by short traders, compared to a total of $38.13 million suffered by long traders.
The ETH liquidations can be explained considering the alleged investigation into the Ethereum Foundation. The knee-jerk reaction and subsequent rally that has helped Ethereum record 13% growth to $3,526.98 marks the reason for the recent sell-off spark.
Market in indefinite mode
The digital currency ecosystem is at an inflection point. While the correction recorded last week is generally considered healthy for the entire industry, it is still unclear whether the current price surge will usher in another all-time high for Bitcoin and other altcoins.
Industry leaders are sticking with Ethereum despite their apparent distress and uncertainty surrounding the likely approval of its proposed ETH spot ETF product, due to its potential security classification.
Ultimately, investors are holding on to core construction fundamentals, such as Dencun’s improvement, that can help drive measurable long-term growth.
