After a difficult start to the week, the cryptocurrency market saw a moderate rebound on Tuesday, with nearly every token in the top 100 by market cap showing gains compared to the previous day. However, CoinGlass data revealed that this surge led to over $92 million in liquidations in the past 24 hours, with $62 million being from short positions.
At the time of writing, the price of Bitcoin had risen by 2.7% to $61,746 in the past 24 hours, while Ethereum’s price had increased by 1.8% to $3,394. The best performers of the day included meme coins Pepe and Dogwifhat, with gains of 14.2% and 13% respectively, as well as gaming-focused token Notcoin, which rose by 9.5%.
However, while this may be good news for the overall market, it spells trouble for short investors. Data showed that 33,296 traders were liquidated in the past 24 hours. Even bullish traders faced some volatility, with approximately $30.6 million in long positions also being liquidated in the past day.
When traders’ bets on asset price movements exceed their preset profits, positions are liquidated, typically based on collateral.
According to data from cryptocurrency exchange Coinbase, the world’s top cryptocurrencies have been on a downward trend for the past two weeks, with Bitcoin dropping to $59,780 yesterday.
Several factors have contributed to downward pressure on Bitcoin, from the sale of seized Bitcoin in Germany to the anticipated release of long-frozen Bitcoin held by the failed cryptocurrency exchange Mt. Gox. However, some analysts are debating whether the price of BTC has already hit bottom.