6. February 2023

• Traders betting against the crypto market have suffered more than $450 million in losses over the past 24 hours as major cryptocurrencies surged higher.
• Over the past day, traders experienced around $514 million in liquidations, with Bitcoin-tracked futures seeing $23 million in both short and long liquidations.
• Bitcoin, the world’s largest cryptocurrency, passed the $21,000 price mark while Ethereum reached around $1,600, both gaining around 10% over the past day.

Crypto traders have suffered a hefty blow in the past 24 hours as the crypto market soared higher. Over $450 million worth of shorts have been liquidated in the past day due to the impressive rally of major cryptocurrencies.

CoinGlass, a crypto data provider, reported that short traders have lost around $457 million across major centralized exchanges. OKX, a crypto exchange, took the largest portion of these liquidations at $241 million, followed by Binance at $116 million. Long traders weren’t spared either, suffering $108 million worth of liquidations. This brings the total value of liquidated positions to more than $727 million, a level not seen since November 8 when FTX, another crypto exchange, faced difficulty.

The majority of liquidations occurred within the past 12 hours, with a total of $514 million liquidated. Bitcoin-tracked futures experienced $23 million in both short and long liquidations, with Ethereum-linked futures seeing over $16.8 million in liquidations. Other digital currencies, such as Solana, DogeCoin, and Aptos, faced $3 million worth of liquidations.

The record level of liquidations coincide with the surge of major cryptocurrencies. Bitcoin, the world’s largest crypto, exceeded the $21,000 price mark while Ethereum reached around $1,600. Both coins gained around 10% over the past day, indicating a strong rally. Activity in the futures market for digital currencies has also increased significantly. Crypto Quant’s Ki Young Jun noted that buyers entered the market early in the morning, pushing the market further up.

The crypto market has been displaying a remarkable surge in the past few days, with more and more traders joining in. While short traders are facing huge losses, long traders have also been caught off guard as they weren’t expecting such a strong rally. It remains to be seen whether the crypto market will be able to sustain its momentum, or if it will soon hit a wall.