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Heavy liquidations of short traders have triggered a short squeeze in the wider crypto market today.
Rising OI amid heightened speculative trading will lead to further formed liquidations.
The crypto market recorded more than $601 million in forced liquidations in the past 24 hours. According to the latest market data as of this writing, more than 138k crypto traders were rekt today, mostly involving short traders.
Furthermore, more than $500 million involved short traders, with the largest single liquidation happening on the Binance exchange involving $4.3 million of ETH/USDT pair.
The crypto liquidations may likely reach and surpass $1 billion later on Wednesday as the Asian markets gradually open. Moreover, crazy crypto speculation has gradually returned following the recent gold price parabolic rally toward a new all-time high.
Impact of the Heavy Crypto Liquidations
The heavy forced liquidations of short traders have catalyzed further bullish sentiment amid renewed interest from whale investors. As more short traders turn bullish to capitalize on the rising trend, the impact of the short squeeze remains palpable in the coming days.
Moreover, Bitcoin price has already broken out of a multi-week falling logarithmic trend and is ready to rally toward a new all-time high. Additionally, the wider altcoin market has gradually followed Ethereum’s price in a bullish outlook.
With the crypto-leveraged trading market having cooled down, following the improved regulatory outlook in the United States and anticipated diplomatic solutions to the ongoing global trade war, the bullish sentiment will likely continue to reign.