Historical Bitcoin rise costs traders more than $ 400 million

A surprising revival in the cryptomarkt has in a short time led to hundreds of millions of losses for traders who had precisely counted on falling rates. Bitcoin (BTC) shot through the border of $ 112,000 for the first twelve hours (for the first time ever), while Ethereum (ETH) rose above $ 2,800 by almost 7 percent. Solana (SOL) followed with a course above $ 158.

More than 114,000 traders pushed out of the market

According to data from Coinglass, a total of more than 527 million dollars in positions were liquidated. Of these, $ 463 million came from short positions, positions that bet on a falling market, while 64 million dollars were liquidated in lung positions.

More than 114,000 traders were forced to be closed by Exchanges. The greatest liquidation took place at the HTX grant, namely a short position on the BTC-usdt pair worth $ 51.5 million.

Liquidations arise when a trader acts with borrowed money, but can no longer meet the margins as soon as the market moves in the wrong direction. Stock markets then automatically close the position to prevent larger losses.

If this happens with many traders at the same time, a chain reaction will arise where they have to buy back en masse. And that pushes the price up extra.

That seems to have happened now. The sudden rise in BTC and ETH caused a domino effect of liquidations, which in turn fisted a further increase. This reflexive movement makes liquidation data an interesting signal for traders.

Ethereum in XRP crypto-ralally

This week Bitcoin is only 2 percent in the Plus with a current rate of $ 111,400, while Ethereum is gaining large terrain with an increase from more than 8 percent to $ 2,810. XRP also follows a plus of 7.3 percent and a rate of 2.43 dollars.

The dominance of short-liquidations indicates a possible turning point in the market sentiment. The strikingly strong performance of Ethereum and XRP compared to Bitcoin underline that other crypto coins are currently set the tone in this revival.