Over the past 24 hours, $308.16 million has been liquidated on short positions, far exceeding long positions’ $195.91 million, according to the data reported today by Ash Crypto. In total, the cryptocurrency market experienced huge liquidations worth $504.07 million, as per the data.
The bit short
A notable aspect noted by the crypto analyst is the massive liquidations of short positions while Bitcoin’s value is currently standing at $110,669, according to metrics from Coinglass.
The digital asset market encountered a significant experience in the past 24 hours, as a whopping $308.16 million in short positions were forcibly liquidated. This is a shocking development triggered by significant gains in several assets. The market boom has been fuelled by an interplay of renewed enthusiasm from traders, improving macroeconomic conditions, and reigniting positive user sentiment.
As short sellers moved to defend their positions, the subsequent buying pressure further pushed the values of most crypto assets up, showcasing the volatile and uncertain nature of the digital asset market.
Bitcoin enters uncharted territory
Today, Thursday, May 22, Bitcoin entered unexplored territory marked by a new all-time high, pushing its price to above the $110,000 mark. The largest digital asset energized a wide rally across the crypto market, with prominent altcoins, like ETH, SOL, and many others, emulating the move and driving the entire market into the green.
The increase in short liquidations may create a ‘short squeeze’ experience, which could further push BTC above the $110k level. A short squeeze is a situation whereby an increase in prices of assets compels investors who sold shorts to shut down such positions, normally by purchasing the assets, pushing prices to surge even further.
The analyst explained this situation better by saying, “Bears are getting fucked.” The market has confirmed that it is an uptrend phase (noted over more than the past three weeks), a time for bulls to enjoy the world again.
The heatmap metrics from Coinglass and the increase in short liquidations highlight an immensely leveraged market environment in which multiple investors are opening directional bets.
