The crypto derivatives market has been rocked by an unprecedented wave of short position liquidations, marking one of the most significant in recent months. According to CoinGlass data, a rapid surge in market prices led to the closure of $665.81 million in short positions over the past 24 hours. When considering long positions as well, the total daily losses amounted to a staggering $789.57 million, impacting nearly 118,000 traders.
Which Altcoins Suffered the Most?
This liquidation wave took a significant toll on traders betting against altcoin prices. Historically, forced liquidations concentrated on major cryptocurrencies, but this time, a broader spectrum of assets was affected with cascades of stop-loss orders. Particularly, XRP, NEAR, and Zcash stood out as major contributors to these losses.
CoinGlass data reveals the recent market surge eliminated $665.81 million in short positions, with total daily losses reaching $789.57 million.
The build-up of high-leverage short positions set the stage for a classic short squeeze. When market prices hit critical thresholds, automatic systems in exchanges began buying back assets at market prices to close open liabilities, further propelling the upward price movement.
Did Bitcoin and Ethereum Lead Liquidations?
Indeed, Bitcoin saw the highest nominal short position liquidation of $384.71 million, spiking by 5.73% to exceed $85,000. The most substantial individual liquidation occurred on Binance‘s BTCUSDT pair, amounting to $11.29 million. CoinGlass, known for its meticulous monitoring of crypto derivatives data, highlighted these significant movements.
For Ethereum short traders, losses reached $157.97 million as ETH appreciated by 5.80%, nearing the $2,710 mark. Solana also participated in the market surge; SOL’s 8.15% rise to $117.28 resulted in the liquidation of $20.21 million in short positions.
- Bitcoin gained 5.73%, with $384.71 million in short positions liquidated.
- Ethereum increased by 5.80%, closing $157.97 million in shorts.
- Solana surged 8.15%, eliminating $20.21 million in shorts.
Major altcoins witnessed notable bullish activity. NEAR climbed by 11.51% to $4.06, erasing $8.88 million in short positions. XRP experienced a 7.99% rise to $1.47, with $10.04 million in liquidations. Zcash jumped 6.24% to $1,514.93, closing $11.51 million in shorts. Collectively, these assets exceeded $30 million in losses within mere hours.
Liquidity maps indicate new critical short position thresholds for Bitcoin at $86,385 and Ethereum at $2,757.
Liquidity distribution maps identified pivotal new levels for Bitcoin and Ethereum’s short positions at $86,385 and $2,757, respectively. The risk exposure for positions in these zones was $72.26 million for Bitcoin and $30.31 million for Ethereum. A market rise of less than 2% is deemed sufficient to reach these levels.
For NEAR and XRP, fresh pressure points emerged at $4.28 and $1.49, respectively. The observed sharp decline in open interest associated with short positions indicates a local retreat by sellers, with short-term momentum shifting towards buyers in the spot market.
