Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Liquidations of short positions in the cryptocurrency market rose to $322 million in 24 hours, the highest level since Black Friday on October 10, sparking a broad rally in the main digital assets.
The data indicates a dramatic change in… Market sentiment Traders who had bet against prices were surprised by the sudden rise.
Sponsored
Sponsored
Index fund inflows boost institutional momentum
You are quoted Coinglass As of 2:00 AM UTC, on Tuesday, liquidations of short positions represented 77.67% of total liquidations, amounting to $414.65 million. About 109,672 traders were liquidated during this period. The largest single liquidation transaction occurred on the HTX platform, where a $91.33 million btc-usdt position was forcibly closed.
The demonstration came as a result of the return of interest of institutional investors in Bitcoin. On January 2, US spot bitcoin ETFs recorded a net outflow of $471 million on January 2. SoSoValue. This represents a sharp reversal after net outflows of $348 million recorded on December 31. This is an indication of the rapid return of the appetite of institutions after the New Year holiday.
Cumulative net inflows into US spot Bitcoin ETFs have now reached $57.08 billion. Total net assets amount to $116.95 billion, which represents 6.53% of the total market capitalization of Bitcoin.
The squeeze exposed the clear gap between institutional positions and individual traders. While individual traders rushed to open short positions ahead of the move, financial institutions maintained net long positions by 76.52%, according to market data. This discrepancy suggests that the smart money was expecting more. Smaller players stayed on bearish bets – a bet that proved expensive after the price reversal.
Major cryptocurrencies are making strong gains
The price of Bitcoin reached around $93,700, compensating for the period of consolidation that dominated the end of December. Alternative digital currencies achieved stronger gains. XRP led the rise of 10.8%, followed by Ethereum and Solana by 0.8% and 0.5%, respectively. On a weekly basis, the gains became clearer, with XRP increasing by 28.8%, Solana by 11.8%, and Ethereum by 9.6%.
Sponsored
Sponsored
The 12-hour settlement data shows particularly intense activity, with total settlements reaching $345.15 million during this period. Liquidations of short positions amounted to $305.43 million, indicating that most of the pressure occurred in the second half of the 24 hours.
Analysis of the stock market reveals widespread suffering from short selling
Losses were not evenly distributed. HTX took the brunt of the squeeze, recording $108.35 million in liquidations, with an astounding 96.05% coming from short positions. This indicates that their user base was highly concentrated due to a downward trend. Hyperliquid, a favorite of more experienced traders, showed a similarly high short position ratio of 87.1%. That shows that even the seasonal market participants found themselves on the wrong side.
Binance, the largest exchange by volume, recorded liquidations of $95.65 million with a short ratio of around 63.4%, reflecting its more diverse user base. This pattern indicates a market in which selling certainty is largely built in, making platform traders vulnerable to losses when market sentiment changes.
The cascading effect amplifies bullish momentum
The wave of liquidations of short positions created a ripple effect in the market. When prices rose, pessimistic traders were forced to close their positions at a loss, pushing prices higher and causing additional liquidations. This upward spiral has fueled bullish momentum in major cryptocurrencies.
Crypto analyst RD on He noted that about $ 1 billion worth of short positions have been liquidated in recent days, adding that the liquidation chart remains unbalanced with heavy short positions above the current prices while there are only a few large long positions below them.
The 24-hour buy/sell ratio stood at 49.99% buy versus 50.01% sell, indicating that the immediate pressure has been absorbed. According to RD, 94,500 is the main pivot to watch. Closing the price above this level and holding it may cause additional sell positions above to be liquidated.
