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In the last 24 hours, cryptocurrency liquidations amounted to $372 million. This depends Data From Queenglass. The liquidation affected a larger number of short position traders as their bet on the price action did not materialize.
The broader cryptocurrency industry saw positive price action as Bitcoin (BTC) briefly rose above $100,000.
Bitcoin is leading a surge in liquidations
Bitcoin's return beyond the $100,000 resistance level fueled altcoins' rally as the market recorded a price surge.
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As expected, traders short positions in the leading digital asset, Bitcoin, led the liquidation fallout.
With a total liquidation of $70.57 million, short position traders accounted for more than half of the liquidation numbers. In the last 24 hours, $40.37 million of short positions were liquidated, with long traders accounting for $30.20 million.
Another major sell-off was recorded in Ethereum (ETH) and XRP, whose total liquidations amounted to $69 million and $42.50 million, respectively. In a similar pattern to Bitcoin, Ethereum recorded more liquidations of short positions than long positions. The numbers were $35.21 million for short positions, compared to $33.79 million for long positions.
XRP It followed the same path as the short traders, with a $27 million liquidation, while the long traders liquidated $15.50 million of the total liquidation of $42.50 million.
Market fluctuations surprise traders
Analysts believe that Bitcoin's price action over the past seven days may be responsible for the massive liquidation of short traders. It is worth noting that many expected Bitcoin to fluctuate between $92,000 and $95,000.
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Hence, Bitcoin's price surge of over $100,000 left many traders unaware as they expected the volatile trend to continue. However, the new forecasts for BTC reaches $249,000 It appeared this year.
The same price slump left behind ETH and XRP last week. However, the recovery in most assets in the market came sooner than expected.
Market watchers watch trends carefully to see how long the bullish sentiment will last. This could signal the next cycle of rallies as the US prepares to take in a new administration on Monday, January 20.
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