$25 million BTC short positions have reportedly been liquidated in an hour.
Currently, BTC trades at $31,757.88.
Following the current uptrend of the crypto market, Bitcoin (BTC) has surged above $30,000 in the past two days. With this, altcoins also started climbing up, where many coins shot up straight. Despite this, the current market condition is a loss for traders who have gone with the short position on BTC.
On-Chain College, the Twitter handle that follows Bitcoin trends, posted that $25 million worth of Bitcoin has been short-liquidated within an hour.
$25 Million in #Bitcoin Short Liquidations in 1 Hour pic.twitter.com/PebFDTON6j
— On-Chain College (@OnChainCollege) May 30, 2022
Digging in detail, BTC holders who have traded for a short position lost gains as they could not meet their expectations that BTC price would go down. In a nutshell, a short position in cryptocurrency is when traders borrow coins from brokers and sell them to other crypto holders, predicting that the price of those specific coins will plunge in the future. If the coin price dips, those traders can buy the coin at a low price and give it back to the brokers.
With that said, the BTC price currently hovers at $31,757.88, which is a setback for traders in the short position. This is because BTC broke traders’ prediction that the coin will lower in price. However, BTC has surged by 3.44% in the past 24 hours and 8.48% in the past week.
In February 2022, nearly $143 million short position liquidation happened, as traders could not reach their expectations. This was when the global crypto market recovered from the past decline due to the Russian war.
More so, if these traders need profit, another crypto plunge must happen, which is not forecasted yet by most analysts. Now, cryptocurrencies are expected to further surge in the coming days.