For cryptocurrency bearish, the past 48 hours have been a nightmare. Those that established short positions after labelling the current upswing a “dead cat bounce” saw nine-digit liquidations. Yesterday’s session was the most ruthless for bearish traders of Bitcoin (BTC) and certain altcoins since the beginning of Q1, 2023.
$227 million in shorts and longs liquidated as crypto recovers
The increasing volatility of the most important cryptocurrencies on June 21, 2023, led to the liquidation of tens of thousands of traders. Across numerous coins, short and long positions totaling $226,998,000 were eliminated. A little more than 80% of these liquidations are the result of bears.
Bitcoin (BTC) bears suffered a loss of $80.93 million yesterday, according to data provided by the cryptocurrency analytics platform Coinglass (previously Bybt). In comparison, bulls suffered four times fewer losses.
Analysts did, however, record the greatest liquidation of Bitcoin (BTC) short positions in more than three months. The most painful session for Litecoin (LTC) bears in months ended with losses of roughly $2.72 million.
Despite the fact that traders of Ethereum (ETH) were not significantly impacted, the highest single liquidation was observed in the ETH/USD long position on BitMEX, where an unfortunate trader lost $2.1 million in a single transaction.
Trading in Bitcoin Cash (BCH), XRP, Sui Network (SUI), Flamingo Finance (FLM), and BCH also saw greater volatility.
PEPE traders among worst sufferers of crypto volatility
Traders of meme coins have to deal with major liquidations. PEPE bulls and bears lost almost $10 million, while DOGE supporters lost $2.59 million over the past 24 hours.
The net capitalization of cryptocurrency markets rose by 15% during the previous six days. The largest cryptocurrency, Bitcoin (BTC), increased by more than 22.1% in a single week.
Another stage of the enthusiasm around Bitcoin ETFs could be blamed for the increase in cryptocurrency prices and volatility.
Recent days have seen a number of the biggest names in asset management, including BlackRock, Fidelity, Invesco, and others, announce their intentions to ask the U.S. SEC for permission to launch a Bitcoin ETF.
