According to coinglass.com, Bitcoin‘s dramatic climb has liquidated around $172 million in short bets in the previous 24 hours. Moreover, as US President Joe Biden held off entirely excluding Russia from the global financial system, the currency led to a crypto market recovery from one-month lows.
Bitcoin’s price has increased by 10% in the previous 24 hours
The world’s largest cryptocurrency has risen 10% in the previous 24 hours, approaching $40,000, after falling below crucial support levels due to fears about Russia’s invasion of Ukraine. The majority of cryptocurrencies saw double-digit rises.
The growth dynamics were rather moderate, indicating buyer concern. However, as markets remain cautious, these are probably long-term investors rather than short-term speculators.
The growth dynamics were relatively modest, which indicates the caution of buyers. It is likely that these are long-term holders rather than short-term speculators, as markets generally remain wary.
-Alex Kuptsikevich, FxPro’s senior financial expert.
This month’s data indicated that overall positioning on BTC was predominantly short.
OKX had the greatest short position ratio, at almost 90%, with $35 million in shorts. Binance had the second-highest shorts, while FTX had 59 percent of its holdings long during the last 24 hours.
The single largest liquidation order happened on Bitmex and was worth nearly $8 million. Overall, traders short against the crypto market lost a whopping $402 million over the past 24 hours.
The action is reminiscent of last year’s GameStop short squeeze when rising retail and social media demand propelled the company’s highly-shorted share price from the teens to roughly $500 in a matter of days. The increase cost short bets in the stock up to $20 billion.
Cryptocurrencies have followed a larger surge in financial markets. In addition, stocks in the United States have risen more than 1% on optimism that the current round of US sanctions would not be as economically destructive as anticipated.
However, in cryptocurrency, safe-haven transactions continued to dominate trading. Tether, the stablecoin, contributed roughly half of the market’s volume in the previous 24 hours, at nearly $63 billion—more than Bitcoin and Ethereum combined.