Crypto Futures Market Experiences Liquidation Squeeze
The cryptocurrency futures market has faced a $152 million liquidation squeeze as Bitcoin has surpassed $47,300.
Liquidations Dominated by Shorts
The past 24 hours have seen significant volatility in the cryptocurrency market, with many coins experiencing positive returns. Bitcoin, in particular, has broken through the $47,000 barrier for the first time since the post-ETF slump.
This sharp price movement has led to chaos in the futures market, resulting in liquidations totaling $152 million. Of this amount, $82 million occurred within the past twelve hours.
The majority of liquidations, over $115 million, involved short positions, representing 75% of the total liquidations.
Short Squeeze Amplifies Price Move
These liquidations, known as a “short squeeze,” have amplified the price move that triggered them. The shorts have contributed to the rally, causing Bitcoin’s upswing to be particularly sharp.
Bitcoin and Ethereum Lead Liquidations
Bitcoin topped the liquidation charts with around $54 million contracts squeezed, followed by Ethereum (ETH) at $24 million.
High Volatility and Leverage Contribute to Liquidations
The cryptocurrency futures market is known for its high volatility and the easy accessibility of extreme leverage, making it risky for uninformed traders.
Bitcoin Finally Breaks $47,300
Bitcoin has finally surpassed the $47,300 level, a break that many had been anticipating.
