- As Bitcoin, Ethereum and several altcoins yielded massive gains overnight, a series of short liquidations were triggered.
- Based on data from IntoTheBlock’s dashboard, total shorts liquidations in crypto have surpassed $1.2 billion.
- FTX exchange accounts for nearly 80% of the $1.2 billion crypto liquidations since October 25.
With the recovery of the broader crypto market, there was a round of massive liquidations on exchanges like FTX. Shorts worth $1.2 billion were liquidated since October 25, as altcoins Ethereum and XRP yielded profits for holders.
Also read: XRP Price: Addresses holding XRP cross 4.34 million, hit new milestone
Short liquidations signals a turning tide in crypto
The recent spike in crypto short liquidations is similar to levels seen in July 2021. A liquidation on a long/short position occurs when an exchange forcefully closes a trader’s leveraged position due to partial or total loss of initial margin. When this happens, there is a margin call followed by a partial or total loss of initial margin through liquidation.
Based on data from TheBlock’s dashboard, more than $1.2 billion in crypto shorts have been liquidated. Analysts believe that the liquidations may have contributed to a short squeeze in cryptocurrencies because of the massive rally in altcoins like Ethereum, Dogecoin and XRP.
Crypto short liquidations from IntoTheBlock data
Overall crypto market capitalization climbed 4%, hitting the $1 trillion mark, a level that the industry attained in August 2022. Since October 25, about 205,000 trades have been liquidated across exchanges with the spike in crypto prices. Samuel Bankman-Fried’s FTX exchange accounts for 72% of the short liquidations according to TheBlock’s data dashboard.
Number of crypto liquidations across exchanges from IntoTheBlock data
Traders going long on cryptocurrencies like Bitcoin suffered upwards of $99 million in liquidations across digital asset exchanges. While FTX recorded upwards of $519 million in short liquidations, leading crypto exchange platform OKX recorded $71 million and Binance recorded $46 million.
Liquidations attributed to Bitcoin’s long and short positions were upwards of $368 million. What’s more, there was a spike in open interest, implying traders want to open more positions in anticipation of a price rally in an asset.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
![Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
![Bitcoin price falls amidst German government transfers, miners activity](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
![Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
![Three reasons why altcoins could shake off losses this week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.