Over $450M Shorts Liquidated in 24 Hours as Crypto Market Extends Rally

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Image source: Pixabay

Traders betting against the crypto market have suffered over $450 million in losses in the past 24 hours as major cryptocurrencies surged in one of the most impressive rallies in about a year.

According to data from CoinGlass, short traders suffered an estimated $457 million on major centralized exchanges over the past day. Crypto exchange OKX took the lion’s share of those liquidations at over $241 million, followed by Binance at $116 million.

Apart from short traders, long traders were also caught off guard as over $108 million in long positions were liquidated. This brings the total value of positions liquidated over the past day to over $727 million, a level not seen since November 8, when trouble hit crypto exchange FTX.

The bulk of the liquidations have taken place in the past 12 hours, according to data from CoinGlass, with the value of liquidated positions reaching $514 million.

Bitcoin-tracked futures saw $23 million in short and long liquidations over the past day, while Ethererum-linked futures saw over $16.8 million in liquidations. Futures tracked by Solana, DogeCoin and Aptos also saw liquidations worth around $3 million.

The record level of selloffs comes as major cryptocurrencies broke through key resistance levels and extended their rallies. Bitcoin, the world’s largest cryptocurrency, broke above $21,000 at some point over the past day, while Ethereum hit around $1,600. Both coins have gained around 10% over the past day.

Meanwhile, there has also been a surge in activity in the digital currency futures market. As Ki Young Jun of Crypto Quant noted, buyers entered the market early Saturday morning, buying around $4 billion worth of bitcoin futures.

Although a mix of factors may have impacted the recent crypto rally, the crypto market managed to gain momentum after new data released Thursday by the US Department of Labor indicated a slowdown. of inflation.

As expected, the annual inflation rate fell to 6.5% in December from 7.1% in November. Month-over-month inflation fell 0.1%, compared to rising 0.1% last month. Core CPI, which excludes food and energy price volatility, fell to 5.7% from 6% in November.

Falling inflation is generally seen as bullish for risky assets like crypto, as it puts pressure on the US Federal Reserve to slow rising interest rates. Over the past year, the Fed and other central banks around the world have aggressively raised interest rates, creating an unfavorable environment for crypto and other risky assets.

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