As Bitcoin hits new all-time highs, short positions are shaking
Cryptocurrency traders betting on a market downturn were caught off guard when Bitcoin soared above $81,000, setting a new all-time high and triggering significant liquidation of short positions.
The huge impact of Bitcoin’s rapid surge is reflected in coin glass Data shows that about $180 million in short-term positions were canceled in the past 12 hours alone.
Bitcoin’s surge has hit traders with short positions the hardest, especially those who are betting against Bitcoin. Bitcoin short positions liquidated approximately $67 million, followed by Dogecoin at $23 million, and Ethereum at $21 million. Long positions were not immune, with approximately $256 million in long positions liquidated during the same period. Overall, CoinGlass data shows that more than 218,000 traders’ positions were affected, with total liquidations reaching $682.7 million.
Source: CoinGlass
Among huge personal losses, a user on OKX suffered a $15.6 million liquidation while exchanging Bitcoin for Tether. This surge in liquidations is the largest in recent history, peaking specifically on November 6th. Being liquidated. As evidence of Bitcoin’s continued growth, TradingView data shows that Bitcoin’s dominance has also increased to more than 59%, reaching its highest level since October.
Market forecasts have improved following the recent US elections, which saw pro-cryptocurrency candidates elected to the Senate and House of Representatives. Analysts say the “Trump effect” is partly responsible for Bitcoin’s rapid rise, as Donald Trump’s reported political resurgence increases individual investor interest in the cryptocurrency. BTC Markets CEO Caroline Bowler reported last week that user logins to her platform had increased by 300%, the highest level in six months.
On-chain analyst James Check said that Bitcoin’s price rise has entered the “euphoria zone,” convincingly breaking through the previous peak. Despite the rapid growth, Check noted that Bitcoin’s market cap to realized value (MVRV) ratio remains relatively balanced, suggesting the market may still have room to grow. He noted that several months of gradual price increases allowed investors to adjust to higher prices, which could provide a stable basis for future rebounds.
Bitcoin’s historic rally continues to influence investors around the world, with significant changes in market sentiment, dominance and position liquidations reflecting its lasting impact on the financial landscape.
