Bitcoin had lost above $ 20,000 at the start of the week, causing uncertainty among investors who previously believed that the price of bitcoin was on a recovery trend. This decline resulted in more sales in the space, albeit cheaper than previously noted. With digital assets now starting another recovery trend, traders are betting against their ability to rise in unfavorable conditions.
Bitcoin Short Traders Suffer Loss
Bitcoin has begun to recover only after the CPI showed that the U.S. inflation rate has reached a recent 40 -year high. At 9.1%, this is the highest figure on record since 1981 and this has led investors to look for other alternatives to protect their wealth from being eaten up by inflation. The result is the spread of new money into the bitcoin market.
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The recovery has seen many traders who have been against bitcoin suffer losses. Data from Coin glass shows that in the last 24 hours, almost $ 200 million in liquidations have been recorded and the majority of liquidations have been from short traders. In total, there were more than 57,800 traders liquidated and with a percentage of 83.91%, more than 48,000 traders who bet against the crypto market recovery have suffered losses.
BTC price recovers above $20,000 | Source: BTCUSD on TradingView.com
Although it has been a long time coming, liquidation has not diminished. In the last 12 hours, the total liquidation has been more than 54 million. At the time of this writing, the last four hours have seen the liquidation of $ 21 million and this is expected to increase as the recovery continues.
In some cases, when market liquidation is calculated, bitcoin is always in the lead. However, this time did not happen because others had been leaders in the liquidation. Ethereum’s recovery over the last day has been as dramatic as bitcoin and short traders have been caught in the wave.
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The second -largest cryptocurrency by market cap reported the majority of liquidations recorded in the last day. It has seen more than 72.64K ETH liquidated, amounting to more than $ 90 million. Bitcoin that typically drives packets only appears to be half of its liquidation value at the same time.
ETH liquidations ramp up | Source: Coinglass
That’s also the case on a 12-hour basis, even if bitcoin catches on about this. Ethereum continues to lead but with smaller margins.
Other cryptocurrencies that have recorded high liquidation in recent days include MATIC, SOL, and AAVE with $ 8.52 million, $ 5.93 million, and $ 2.81 million.
Featured image from Financial Times, chart from TradingView.com
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