Crypto Short Squeeze Leads to $1B Liquidations

Bitcoin short-sellers suffered losses as the cryptocurrency hit new all-time highs, leading to over $1 billion in short positions liquidated in 24 hours. $1.01 billion in crypto short positions were liquidated, affecting 232,149 traders, with $570 million in Bitcoin shorts and $206.93 million in Ether shorts. Bitcoin liquidations totaled $590.04 million. Source: CoinGlass.

The surge in Bitcoin and Ether prices triggered a shakeout in the market, pushing crypto market capitalization up 4.4% to $3.63 trillion. Analysts expressed disbelief at the rise, with one calling it a “MASSIVE Short squeeze on BTC & ETH.” The Crypto Fear & Greed Index held steady at a “Greed” score of 71. Source: CoinMarketCap.

An earlier $2.24 billion liquidation event occurred on Feb. 3 amid fears of a global trade war. Analysts were divided on Bitcoin’s potential for new highs, with some noting a lack of strength in traders. However, others, like MN Trading Capital founder Michael van de Poppe, were bullish on Bitcoin hitting new all-time highs soon.

Traders are now betting on Bitcoin’s price to remain stable or increase. Approximately $2.11 billion in long positions are at risk of liquidation if Bitcoin retraces to $112,000. Source: CoinTelegraph.

Read more at Cointelegraph: $1B Crypto Shorts Wiped, Bitcoin and Ether Continue Rally