• Crypto markets saw $200 million in losses due to short trades as Bitcoin and Ether surged.
• Bitcoin futures had the most liquidation losses at over $85 million, while Binance recorded the most losses among exchanges at $68 million.
• Tokens of layer 1 blockchains such as Solana (SOL) and Polygon’s MATIC added 10%, while Artificial Intelligence tokens such as Fetch (FET) and AGIX rose over 12%.
Crypto Markets See Over $200 Million in Losses
Crypto markets saw a dramatic surge in prices this past 24 hours, with market capitalization reaching its highest level since November. Despite the gains, traders that bet on a market-wide decline were taken off guard, resulting in over $200 million in overall liquidation losses due to short trades.
Bitcoin Futures Leads Liquidations
Bitcoin futures saw the most liquidations out of all cryptocurrencies, with over $85 million lost alone. Ether futures followed with $58 million in liquidations, while Aptos, Solana and Solana each saw losses between $3 to 4 million. Crypto exchange Binance recorded the highest among its counterparts at $68 million, while OKX came second with total loss of$51 million.
Rise of Token Prices
The surge also brought about a rise in token prices across various layer 1 blockchains such as Solana (SOL) and Polygon’s MATIC which both increased by 10%. AI-focused tokens like Fetch (FET) and AGIX rose over 12% during this period as well. Further, OKB – native token of crypto exchange OKEX – surged by 20%, making it one of the biggest gainers during this period.
Liquidations Can Signal Local Tops/Bottoms
Large liquidations can signal local tops or bottoms of steep price moves which can potentially allow traders to position themselves accordingly. This could be seen through large liquidations caused by short trades when prices climbed unexpectedly during this period; proving that cryptocurrency trading is still very much volatile despite signs of recovery for some tokens across different blockchain networks..
Overall though, these events prove that cryptocurrencies are still very much volatile despite signs of recovery for certain tokens from specific blockchain networks. Traders should take precautions before entering into any leveraged positions due to potential risk associated with large price movements within a short time frame leading up to large liquidation numbers like those seen today.