$185 million in shorts, or bets against price rises, were liquidated by traders who bet on a market-wide decline.
This resulted in over $200 million in liquidation losses, which are caused by an exchange forcing a trader to close a leveraged position due to a partial or total loss of margin. When a trader is unable to meet the margin requirements for a leveraged position (does not have sufficient funds to keep the trade open), this happens.
Traders may be able to position themselves accordingly based on large liquidations that indicate a local top or bottom of a steep price move.
There were over $85 million in liquidations in bitcoin-tracked futures alone, the highest among all cryptocurrencies. Ether futures lost $58 million, while aptos, solana, and solana futures all lost $3 million to $4 million.
At $68 million, Binance suffered the most losses among its counterparts, followed by OKX at $51 million.
The crypto market capitalization increased 8.8% to its highest level since November, erasing losses stemming from the collapse of FTX and troubles at Genesis.
A market-wide recovery was driven by Bitcoin and Ether’s price increases of over $24,500 and $1,600, respectively. OKX’s Native Tokens, Okb, surged 20%, the most among major cryptocurrencies, and BNB Chain’s bnb (BNB) surged to $323 in Asian afternoon hours after reversing losses earlier this week.
Throughout the past 24 hours, layer 1 blockchain tokens solana (SOL) and matic (MATIC) have gained over 10% each. Meanwhile, artificial intelligence-focused tokens such as fetch (FET) and AGIX have gained over 12%.
