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In the last 24 hours, cryptocurrency liquidations have hit $372 million. This is according to data from CoinGlass. The liquidation affected more short position traders as their bet on price movement did not actualize.
The broader crypto industry witnessed positive price movement as Bitcoin (BTC) rallied past $100,000 briefly.
Bitcoin leads liquidation spike
Bitcoin’s resurgence past the $100,000 resistance level fueled an altcoin rally as the market registered an upward price push.
As expected, short-position traders on 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 figures. In the past 24 hours, $40.37 million were liquidated for short positions, with long traders accounting for $30.20 million.
Other key sell-offs were registered on Ethereum (ETH) and XRP, which had total liquidations of $69 million and $42.50 million, respectively. In a pattern similar to Bitcoin, ETH registered more short-position liquidations than long positions. The figures were $35.21 million for shorts against $33.79 million for long positions.
XRP followed the same trajectory as short traders, with $27 million in liquidations, while long traders liquidated $15.50 million out of the total liquidation of $42.50 million.
Market volatility catches traders off-guard
Analysts opine that the price movement of Bitcoin within the last seven days might have accounted for the massive liquidation of short-position traders. Notably, many had come to expect BTC to fluctuate between $92,000 and $95,000.
Hence, BTC’s surge of over $100,000 caught many traders unaware as they expected the fluctuating trend to continue. However, new projections of BTC hitting $249,000 this year have emerged.
The same price stagnation trailed ETH and XRP in the past week. However, the rebound across most of the assets on the market came sooner than speculated.
Market watchers keenly observe trends to see how long bullish sentiment will last. This could signal the next cycle of rallies as the U.S. prepares for a new administration on Monday, Jan. 20.