Nearly $360M In Crypto Shorts Squeezed As Bitcoin Recovers To $116,000

Data shows cryptocurrency short investors have suffered large liquidations during the past day as Bitcoin and altcoins have made a recovery. Bitcoin, Ethereum Have Surged In The Last 24 Hours Bitcoin and other cryptocurrencies have witnessed a rally during the past day, breaking away from the slump the market had earlier fallen ￰0￱ the height of this surge, Bitcoin broke past $116,000, while Ethereum touched $4,250. Related Reading: XRP Flashes TD Buy Signal: Start Of Fresh Rally? The assets have since seen a small ￰1￱ chart below shows how BTC’s latest trajectory has ￰2￱ its current price of $115,400, Bitcoin is up about 4% on the weekly timeframe.

Similarly, Ethereum at $4,160 is in a profit of 3.4%. Most other digital assets have seen similarly positive returns, although there are some outliers like Tron, which is down more than 7%. The market-wide recovery during the past day has meant that a large amount of short liquidations have piled up on the derivatives ￰3￱ Market Liquidations Have Totaled At $467 Million According to data from CoinGlass, about $467 million in cryptocurrency-related derivatives contracts have been liquidated over the last 24 hours. A contract is said to be “liquidated” when its platform forcibly shuts it down after it accumulates losses of a certain degree (as defined by the exchange).

Given that coins across the board have rebounded, the contracts crossing this threshold would mostly be the short ￰4￱ indeed, the data would confirm ￰5￱ is visible above, liquidations related to bearish cryptocurrency bets have reached $358 million in this window, representing 76.6% of the total flush in the ￰6￱ led the liquidations with $177 million in contracts involved, while Ethereum contributed the second most with $130 million in ￰7￱ of the rest, Solana witnessed the largest flush at $34 ￰8￱ some other news, Bitcoin spot exchange-traded funds (ETFs) have observed a notable amount of inflows over the past month, as CryptoQuant community analyst Maartunn has pointed out in an X ￰9￱ Reading: Bitcoin Could Drop To $97,500 If This Key On-Chain Level Fails, Glassnode Warns Spot ETFs refer to investment vehicles that allow investors to gain exposure to an asset without having to directly own ￰10￱ US SEC approved BTC spot ETFs in January of ￰11￱ is the chart shared by the analyst that shows how the 30-day netflow for these vehicles has fluctuated since: As displayed in the above graph, Bitcoin spot ETFs have seen inflows of $4.7 billion during the past ￰12￱ spot ETFs, which gained approval in mid-2024, have also enjoyed inflows in this period, although their value of $983 million is significantly less than BTC’s.

Featured image from Dall-E, CoinGlass. com, CryptoQuant. com, chart from ￰13￱