Fun

While Bitcoin Tapped New Price Highs, 78,000 Short Positions Worth Over $800 Million Got Liquidated

News Feed - 2021-01-03 07:01:02

While Bitcoin Tapped New Price Highs, 78,000 Short Positions Worth Over $800 Million Got Liquidated


While bitcoin has crossed a new all-time price high in 2021, traders are leery toward shorting the crypto asset. Data from Bitfinex shows the number of short contracts has been extremely low in comparison to the total number of shorts in mid-March 2020. On Saturday, January 2, 2021, when the price of bitcoin surpassed $33k, over 100 million dollars in short positions were liquidated in a matter of minutes.


On Saturday, during the afternoon trading sessions (EST), bitcoin (BTC) reached $33,333 per unit. The price is a lifetime high, in terms of fiat value, during the course of the crypto asset’s 12-year existence. Bitcoin’s value has also increased a great deal since March 12, 2020, otherwise known as ‘Black Thursday.’ Since that day, the price of BTC has risen over 777% outshining nearly every asset under the sun, besides a few other crypto assets. Liquidated short on XBTUSD: Buy 10,000,000 @ 30864 🏅🏆💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯💯 ~ I"m shocked, shocked to find that gambling is going on in here!


— REKT (@BXRekt) January 2, 2021



Since bitcoin has been rising immensely in value, traders have not been willing to short the crypto asset since mid-March. For instance, on the trading exchange Bitfinex, the number of short contracts have dropped 77% since mid-March 2020. This action can be seen across a myriad of other cryptocurrency exchanges including Bitmex, Bybit, and other platforms that offer margin and leverage trades. Shorts contracts across the board have dropped considerably. #bitcoin shorters be like

OH NO OH NO OH NO NO NO NO NO


— CryptoKid (@mancryptodude) January 2, 2021



Despite the lower activity of short contracts on Bitfinex, the number of longs has not increased a great deal either. In fact, since April 2020, the number of long contracts hosted on the platform have also plummeted. The shorts and longs staying fairly low, suggests traders are uncertain on how to place their bets in accordance with future BTC prices.



Meanwhile, those traders who are willing to short bitcoin (BTC) during this impressive bull run, have lost their shirts many times on the way up. One example is when BTC crossed the $20k all-time high two weeks ago, around 74,000 short positions got liquidated that day. At the time, the derivatives exchange Bybit’s liquidation data explained that it saw a whopping $1 billion in liquidations and roughly 98% of the trades were shorts.


Today’s rise over the $33k price zone has been no different, as 78,107 traders were liquidated according to Bybit data on Saturday. The largest single liquidation order happened on Bitmex-BTC this morning (EST), with a value of around $10 million. Over $800 million contracts were liquidated during the last 24 hours of crypto trading.


The popular Twitter account dubbed ‘Rekt’ recorded the $100 million worth of liquidations at $30,864 per unit price. “Liquidated short on XBTUSD: Buy 10,000,000 @ 30,864,” Rekt tweeted. “I’m shocked, shocked to find that gambling is going on in here,” he added.


What do you think about the lower activity of bitcoin shorters and the liquidations after bitcoin’s all-time highs? Let us know what you think about this subject in the comments section below. BTC to Gold Exchange Rate Surges to New All Time High of 17 Ounces per Bitcoin MARKETS AND PRICES | 6 hours ago Zero to $318,000: Proponents and Detractors Give a Variety of Bitcoin Price Predictions for 2021 MARKETS AND PRICES | 7 days ago Tags in this story $500 million, 100 million, Bitcoin, Bitcoin (BTC), Bitcoin Long, Bitcoin Shorting, Bitfinex Data, BitMex, BTC long, BTC Shorts, Bybit, Bybit Data, crypto assets, Liquidation, Liquidations, Long, REKT, Shorts, Traders Liquidated


Image Credits: Shutterstock, Pixabay, Wiki Commons, Bybit Data, Twitter, Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

South Korea Passes Bill to Regulate Cryptocurrency in Line With FATF Standards
South Korea Passes Bill to Regulate Cryptocurrency in Line With FATF Standards South Korea’s National Assembly finally passed a bill that provides a framework for the regul
Railgun denies being used by North Korea as it nears $1B total volume
Felix Ng7 hours agoRailgun denies being used by North Korea as it nears $1B total volumePrivacy protocol Railgun, which security analysts have labeled a “prime alternative” to Tornado Cash, denied U.S.-sanctioned ent
Gareth Jenkinson19 minutes agoFiat on-ramps, banking partners crucial for institutional Web3 adoption - European Blockchain ConventionProminent fiat payment rail services and neobanking platforms are becoming a catalyst
Cornucopias: A Revolutionary Cardano Blockchain Project That Is Redefining the Gaming Metaverse Industry
Cornucopias: A Revolutionary Cardano Blockchain Project That Is Redefining the Gaming Metaverse Industry press release PRESS RELEASE.The metaverse is a virtual world that allows mil
Bitcoin Defi: Smart Contract Platform RSK Integrates ETH-Based Stablecoin DAI
Bitcoin Defi: Smart Contract Platform RSK Integrates ETH-Based Stablecoin DAIOn October 6, 2020, the RIF (RSK Infrastructure Framework) development team announced that the Makerdao
Shiraz Jagati10 hours agoHow Google’s AI legal protections can change art and copyright protectionsAmid myriad legal accusations surrounding its AI services, Google stands its ground, vowing to protect its users.289 To
Bitcoin, Ethereum Technical Analysis: BTC up 10% From Same Point Last Week
Bitcoin, Ethereum Technical Analysis: BTC up 10% From Same Point Last Week Despite trading lower on Monday, bitcoin is up over 10% from the same point last week, with ETH also gain
FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams ‘Erroneous Inclusion’ in FTX Bankruptcy Filing
FTX Collapse: Africa-Focused Payments Firm AZA Finance Slams "Erroneous Inclusion" in FTX Bankruptcy Filing The founder and CEO of an Africa-focused payments firm, Elizabeth Rossie
Ilias Salvatore11 hours agoFinancial decision-making: Using smart-analyticsSmart analytics are not just a tool. They can be a game changer in making more frequent and accurate financial decisions.275 Total viewsListen to
ECB Economists Suggest Limiting Access to Digital Euro to Protect Banks
ECB Economists Suggest Limiting Access to Digital Euro to Protect Banks A group of economists evaluating the potential effects of a digital euro have insisted that restricting acce
Billionaire Mike Novogratz Says Bitcoin Market Is ‘in Good Shape’ — China Has ‘Less and Less’ Influence Over Crypto
Billionaire Mike Novogratz Says Bitcoin Market Is "in Good Shape" — China Has "Less and Less" Influence Over Crypto The billionaire investor and CEO of Galaxy Digital, Mike Novog
Tom Blackstone6 hours agoTether attestation shows cash and cash equivalents of 86% as loans declineTether’s newest reserve attestation shows the highest-ever percentage of cash equivalents, with most reserves consistin