{"id":672,"date":"2022-05-15T16:30:18","date_gmt":"2022-05-15T16:30:18","guid":{"rendered":"https:\/\/freakcryptos.com\/index.php\/2022\/05\/15\/crypto-shorts-see-240m-flush-as-bitcoin-rebounds-back-above-30k\/"},"modified":"2022-05-15T16:30:18","modified_gmt":"2022-05-15T16:30:18","slug":"crypto-shorts-see-240m-flush-as-bitcoin-rebounds-back-above-30k","status":"publish","type":"post","link":"https:\/\/freakcryptos.com\/index.php\/2022\/05\/15\/crypto-shorts-see-240m-flush-as-bitcoin-rebounds-back-above-30k\/","title":{"rendered":"Crypto Shorts See $240M Flush As Bitcoin Rebounds Back Above $30k"},"content":{"rendered":"


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Data shows the crypto futures market has taken a $380 million beating over the past day as Bitcoin has rebounded above $30k. Out of this amount, $240 million liquidations have belonged to short traders.<\/p>\n

Crypto Shorts Observe $240 Million In Liquidations Over Last 24 Hours<\/h2>\n

In case anyone isn\u2019t aware of what \u201cliquidations<\/a>\u201d are, it\u2019s best to first take a brief look at the workings of margin trading in the crypto futures market.<\/p>\n

When an investor opens a, say, Bitcoin long or short contract at a derivatives exchange, they first have to put forth some collateral called the \u201cmargin.\u201d This margin can be in BTC, any other coin, or even fiat.<\/p>\n

Against this margin, the investor may choose to take on \u201cleverage<\/a>,\u201d a loaned amount often many times the initial position.<\/p>\n

The advantage of leverage is that if the price moves in the direction the contract bet on, the profits earned are then many times more now.<\/p>\n

Related Reading |\u00a0Bitcoin Bloodbath Awakens Sleepy Giant As Spot Volumes Surge<\/a><\/em><\/strong><\/p>\n

However, it is also true that any losses incurred will also be multitudes more. When such losses eat up a specific portion of the margin, the exchange forcefully closes off the Bitcoin position.<\/p>\n

This is what a liquidation is. The below table shows the data for liquidations in the crypto market over the past day.<\/p>\n

\"Bitcoin<\/p>\n

Looks like liquidations in the futures market have amounted to about $380M In Last 24 Hours | Source: CoinGlass<\/a><\/pre>\n
As you can see above, the crypto market has suffered some heavy liquidations over the past day, with $184 million coming in the past 12 hours alone.<\/p>\n
A majority of the liquidations have been from short traders, which makes sense as coins like Bitcoin have observed a big rebound in the price today.<\/p>\n
\"Bitcoin<\/p>\n
Around 63% of the liquidations have involved shorts | Source: CoinGlass<\/a><\/pre>\n
Looking at the above data, it seems like more than $240 million liquidations have been short traders getting flushed.<\/p>\n
Related Reading |\u00a0Bitcoin Crash 20% in 5 Days. Why is it the Golden Time to Enter the Crypto Market?<\/a><\/em><\/strong><\/p>\n
Large liquidations like today\u2019s aren\u2019t particularly uncommon in the crypto market. There are a couple of reasons behind this.<\/p>\n
The first is the high volatility of coins. Even the biggest coins like Bitcoin and Ethereum can observe rather large swings in a short timespan.<\/p>\n
The other factor that contributes to this is the fact that many derivatives exchanges offer as high as even 100x leverage.<\/p>\n
Uninformed traders opting for such large positions in a volatile market like crypto greatly increases the risk of liquidations.<\/p>\n
Bitcoin Price<\/h2>\n
At the time of writing, Bitcoin\u2019s price<\/a> floats around $30.5k, down 15% in the past week.<\/p>\n
\"Bitcoin<\/p>\n
The price of the coin seems to have already observed a rebound from the crash | Source: BTCUSD on TradingView<\/a><\/pre>\n
Featured image from Unsplash.com, chart from TradingView.com<\/pre>\n<\/div>\n

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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"
Data shows the crypto futures market has taken a $380 million beating over the past day as Bitcoin has rebounded above $30k. Out of this amount, $240 million liquidations have belonged to short traders. Crypto Shorts Observe $240 Million In Liquidations Over Last 24 Hours In case anyone isn\u2019t aware of what \u201cliquidations\u201d are, it\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[649,613,20,24,650,651,648],"class_list":{"0":"post-672","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-240m","9":"tag-30k","10":"tag-bitcoin","11":"tag-crypto","12":"tag-flush","13":"tag-rebounds","14":"tag-shorts"},"_links":{"self":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts\/672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/comments?post=672"}],"version-history":[{"count":0,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts\/672\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/media\/673"}],"wp:attachment":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/media?parent=672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/categories?post=672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/tags?post=672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}