Crypto Market Sees $503.7 Million Liquidations Bitcoin Shorts Hit Hard

In a dramatic turn of events, the crypto market witnessed a significant shift in liquidation flows, with short positions being particularly hard hit. According to CoinGlass, the total liquidations amounted to $503.7 million, with a stark imbalance favoring Bitcoin. The data revealed that only $45,970 in long positions were liquidated, while $2.17 million in short positions were wiped out, highlighting a 4,720% difference in liquidation imbalance.

Bitcoin's price hovered around $105,000 on Tuesday afternoon, showing minimal price movement on the surface. However, the underlying mechanics told a different story. The hourly chart from Binance indicated a failed breakdown attempt, followed by a swift rebound above $105,000, likely triggering a wave of short liquidations. Despite the price increase of only 0.16%, the liquidation activity suggested that the real action was happening behind the scenes, driven by aggressive short-selling.

Ethereum also played a significant role in the liquidation event, with $16.03 million in liquidations, making it the largest among all assets. The biggest single liquidation order was for ETH/USDT, valued at $12.14 million, and executed on Binance. Following Ethereum, Bitcoin saw total liquidations of $2.21 million. Other assets such as SOL, MGO, and 1000PEPE also experienced liquidations exceeding half a million dollars each, demonstrating the broader impact of the market's movements.

Short positions bore the brunt of the liquidations. Out of the total $503.7 million liquidated, $371.35 million were short positions, while only $132.34 million were long positions. This imbalance persisted even on shorter time frames, with $18.64 million in shorts liquidated compared to $7.84 million in longs over a four-hour period. This indicates that the day's movements were more about panic covering rather than fresh bullish conviction.