Bitcoin is on a roll! After dipping below $49,000 yesterday, the crypto king bounced back and crushed through $51,500, hitting its highest point since last year. But this rally wasn’t smooth sailing for everyone. Futures traders got squeezed hard, with $221 million in liquidations happening in the past 24 hours.
What happened? As Bitcoin shot up, traders who bet on it going down (shorts) got caught off guard. The exchange forced them to buy Bitcoin to close their bets, pushing the price even higher. This cascading effect is called a “short squeeze”, and it can be brutal for those on the wrong side.
Over $138 million of the liquidations belonged to short holders, while longs also felt the pain with nearly $93 million lost. Bitcoin led the charge with $92 million in liquidations, followed by Ethereum at $51 million.
Despite the carnage, traders are staying optimistic. Bitcoin’s open interest (total amount bet on its future price) is still rising, showing they believe the rally has legs.
This is a wild ride for the crypto market! Stay tuned to see if Bitcoin can hold its gains and if more futures traders get caught in the squeeze.
Read Also: Japan Cracks Down on 'Unlawful' Crypto Transfers
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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