Tables turn as shorts suffer in the wake of Bitcoin reclaiming $40k

Tables turn as shorts suffer in the wake of Bitcoin reclaiming $40k

By Sam Grant - min read
  • Monday’s slump saw over $470 million in long bets wiped away from the market
  • In the last four hours, the majority of the liquidations have been from traders betting on prices declining

Bitcoin price fell below $40k early on Tuesday for the first time since March 16 as the market underwent further correction. Altcoins felt the pinch as well, with their prices sliding even further than they did on Monday. The premier alt, Ether, fell to a multi-week low of $2,958, CoinMarketCap data shows.

Two contrasting strokes

The crypto market has since slightly loosened, with Bitcoin climbing back to $40,210 where it was last spotted hovering. Ethereum’s native token has moved up to $3,020. This minor recovery has meant losses for traders betting on a continued downtrend.

Data from Coinglass shows that short crypto traders have accounted for the bulk of the liquidation in the last four hours. The average ‘shorts’ contribution to the total liquidation volume for all exchanges is 84.72%. FTX, Bybit, BitMEX and Bitfinex exchanges have recorded a shorts liquidation share figure higher than this.

Bitcoin futures traders top the list, having been drained $7.20 million in the past four hours. Ethereum (ETH) and Near (NEAR) futures make up the second-biggest and third-biggest shares, respectively. The former has seen losses of $803.31k, while the latter has recorded $665.46k.

In the 24-hour time frame, however, long liquidations still rule as the majority of the traders bet on a continued crypto rally coming off the weekend. Monday’s total liquidation figure ($428.24 million for long and $45.2 million for short) is the highest recorded since January 22. Markedly, the long liquidation volume during yesterday’s trading session was almost 10 times larger than that of short.

NEAR and SHIB are moving contrary to the market winds

While most crypto coins have printed losses over the last 24 hours, two have stood out among the top ones, charting an uptrend.

Meme-coin SHIB is trading up 6.80% on the day, but it has to be noted it is over 6.50% below its price last week. NEAR protocol’s native token NEAR, on the other hand, has been charting a green course throughout the day and is trading 8.60 higher than yesterday.