Bitcoin Cash (BCH) shorts lost the most in 2 years as prices surge to $320

[ad_1]

Traders betting against bitcoin cash (BCH) lost the highest amount in more than two years amid a price spike to the $320 level last week, according to data from Coinalyze.

Shorts and longs cumulatively lost more than $25 million on futures tracked by BCH, which may have contributed to the sudden rise. Shorts refer to bets against any asset, while longs are bets on price increases.

Since Monday, funding rates have fallen negative on all exchanges that list BCH futures. Negative funding rates indicate that short traders are dominant and are willing to pay long traders to stay in their positions.

BCH traders pay funding rates of up to -0.05% every 8 hours in exchange fees, implying that short-term interest on the tokens is increasing.

Liquidation refers to when an exchange forcefully closes a traders leveraged position due to a partial or full loss of the traders initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position (does not have sufficient funds to keep the trade open).

Large selloffs can signal the local high or low of a large price move, which can allow traders to position themselves accordingly.

Last week’s moves likely came amid rising BCH trading volumes on South Korean exchanges whose traders are known for their irrational exuberance and the launch of EDX Markets, a new weight-backed exchange. traditional finance heavyweights Fidelity Digital Assets, Charles Schwab and Citadel Securities which supports BCH as well as bitcoin (BTC), ether (ETH) and litecoin (LTC).

[ad_2]