header banner
Default

BitCoin Traders Face More Than $100M in Short Liquidations as the Coin Reaches a Three-Month High Above $31,000


Table of Contents

    LXF2COBSKBCNHNRE3WTK2BZ7GE

    Cryptocurrency derivatives traders have endured over $150 million of liquidations over the past 24 hours as rapidly surging digital asset prices caught many market participants off-guard.

    Most of the positions wiped out – worth some $110 million – were leveraged shorts, or traders who bet that prices would fall, CoinGlass data shows. This was the second-largest amount of short liquidations in any day since late August.

    Bitcoin (BTC) traders were hit by $55 million of liquidations, predominantly those who shorted its price, followed by ether (ETH) traders' roughly $29 million of liquidations, per CoinGlass. Chainlink (LINK) speculators also suffered over $9 million in liquidations as LINK hit its highest price since May 2022.

    The liquidations occurred as bitcoin rallied 4% to surpass the $31,000 price level for the first time since July, extending its October advance. Most of the alternative cryptocurrencies, or altcoins, also soared, with Chainlink's LINK, Polygon (MATIC) and Polkadot (DOT) posting 6% to 10% advances at one point.

    Liquidations happen when an exchange closes a leveraged trading position due to a partial or total loss of the trader's initial money down, or "margin," because the trader fails to meet the margin requirements or doesn't have enough funds to keep the position open.

    Edited by Nick Baker.

    Sources


    Article information

    Author: Cody Hill

    Last Updated: 1698502441

    Views: 714

    Rating: 3.9 / 5 (105 voted)

    Reviews: 81% of readers found this page helpful

    Author information

    Name: Cody Hill

    Birthday: 2016-11-22

    Address: 0029 Heath Canyon Suite 806, Allenmouth, MN 82479

    Phone: +4530714087342444

    Job: Virtual Reality Developer

    Hobby: Cocktail Mixing, Fishing, Mountain Climbing, Magic Tricks, Robotics, Billiards, Table Tennis

    Introduction: My name is Cody Hill, I am a exquisite, brilliant, daring, dear, unreserved, risk-taking, clever person who loves writing and wants to share my knowledge and understanding with you.