• 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

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

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


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP