Data shows the cryptocurrency derivatives market has seen a huge amount of liquidations following Bitcoin’s surge to a new all-time high (ATH).
After prolonged consolidation just under the ATH, Bitcoin has finally broken through to set a new record. Although brief, BTC’s move saw it touch the $112,000 mark.
Below is a chart that shows how the asset’s recent performance has been like:
Many of them have outperformed BTC, including Ethereum (ETH), which has seen a profit of around 4.5% during the past day. A notable performer among the top coins has been Sui (SUI), observing a rise of over 9% in this window.
With the bullish price action in the sector, the investors betting on a bearish outcome over at the derivatives side have naturally been dealt a blow.
In total, the cryptocurrency market as a whole has faced liquidations of almost $528 million in this period. Out of these, $453 million in liquidations, representing 85% of the total, came from the short investors alone.
In terms of the individual symbols, Bitcoin and Ethereum contributed the most toward the squeeze, with $225 million and $148 million in liquidations, respectively.
Mass liquidation events like this latest one aren’t a particularly rare sight in the cryptocurrency sector, due to coins being relatively volatile and extreme amounts of leverage being easily accessible.
When mass liquidation events happen, it’s not unusual to see the Open Interest drop as investors get liquidated or exit the market. This happened with the last two short squeezes and also the latest one.
It’s apparent from the chart, though, that while Open Interest remained down after the previous rallies, it quickly bounced back up following the initial drop during the latest one. This trend could point toward fresh long positioning occurring in the sector.
