Traders who betted against cryptocurrency prices are now licking their wounds after Bitcoin and other cryptos rallied against all odds.
Data shows that many short sellers have been slapped with liquidations totalling more than $600 million since January 13.
Following the US’ soft CPI print, crypto assets fared nicely, indicating that the correlation between digital assets and bullish sentiments might not change soon.
Good times for Bitcoin: Fundamentals demonstrate that this week’s price action was encouraging, and there is a good possibility that the absolute bottom has been reached for crypto asset pricing.
The flagship crypto is still in the green daily despite retracing slightly since this local peak.
Bitcoin surpassed $400 billion in market capitalization earlier this year, dominating the altcoin market with a 41% share.
In just a few days, the price of bitcoin has increased by about 20% rising from $17,500 less than a week ago to $21,000.
Bitcoin has risen to its highest levels since the market was rocked by the collapse of the crypto exchange FTX.
Short sellers’ loss: The collapse of FTX in November briefly drove Bitcoin to a two-year low of $15.5K. The prices of other cryptos also declined drastically, even as short sellers took advantage of this. But with the reported recovery, the short sellers are now drowning in losses.
Data from CoinGlass shows that over $208 million has been liquidated in the last day alone on the crypto exchanges.
Bitcoin liquidations reached $34.71 million on the previous day. At the time of writing, the top cryptocurrency by market capitalization is trading for $21K, a gain of 23% over the previous week.
Ethereum liquidations have totalled $47.59 million throughout the same time frame. At the time of writing, the market cap leader in smart contracts is trading for $1,553, up 21% from the previous week.
Despite recent network issues, liquidations for ETH rival Solana (SOL) have topped $5.87 million over the past day. The 11th-largest cryptocurrency by market capitalization is currently trading for $23.10, up 61% from the previous week.
In the past day, liquidations for Aptos (APT), the 40th-largest cryptocurrency by market cap, have surpassed $5 million, reaching $5.36 million as of this writing. APT is currently trading at $8.14, up 112% in the previous week.
Last but not least, according to liquidations of Dogecoin a popular meme token backed by Elon Musk had reached $3.29 million in the previous day. At the time of writing, DOGE is trading for $0.0836, up 14% from the previous week.
It’s unclear whether this indicates that it has bottomed out and is having a revival or merely a temporary comeback, but there are still highly bullish traders. There should be some intriguing weeks ahead.