Short Liquidations Totalled More Than $73 Million When the Price of Bitcoin Rose Above $45,800

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Last Updated on January 3, 2024 by Bitfinsider

Bitcoin momentarily climbed to a year-to-date high of more than $45,800 in the last 24 hours, spurred by rising expectations that regulatory permission for US-based spot bitcoin ETFs may be given soon.

The largest digital asset by market cap has since retraced somewhat to trade for $45,353 at 7:00 a.m. ET. Major cryptocurrencies such as solana, the native token of the Solana network, and ether also had daily gains of 10% and 4%, respectively.

The recent price increase resulted in a significant liquidation of short bets on centralized exchanges. Because of the volatility, more than $81 million in bitcoin positions were liquidated, with the majority ($73.2 million) being shorts.

According to CoinGlass statistics, the whole crypto market saw approximately $133 million in liquidated short positions in the last 24 hours, amounting to a total of $177 million in liquidations across several centralized exchanges.

Liquidations occur in derivatives markets when a trader’s position is forced liquidated due to insufficient cash to cover losses. This occurs when market moves are unfavourable to the trader’s position, causing the trader’s initial margin or collateral to be depleted.

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