$93 Million in Bitcoin Shorts Liquidated in 1 Hour Amid Bullish Market

• $93 Million Bitcoin Shorts were liquidated in only one hour.
• This is due to sudden price swings in a volatile environment, as well as the ability to access high leverage on derivative exchanges.
• According to data from the on-chain analytics firm Glassnode, total futures liquidations have been increasing.

As Bitcoin continues to make headlines, the crypto market has been abuzz with activity. In the past day, Bitcoin has pushed above the $19,000 mark, and in response to this, the Bitcoin futures market has seen a large amount of shorts liquidated.

According to data from the on-chain analytics firm Glassnode, a total of $93 Million worth of Bitcoin shorts were liquidated in only one hour. A “liquidation” occurs when a derivative exchange is forced to close up a contract on the Bitcoin futures market. This usually takes place when the collateral amount that the holder had to put up in order to open the position is lost due to the BTC price moving opposite to the direction the investor bets on.

The crypto futures market is generally volatile, and this is due to a few reasons. One of the main reasons is that many derivative exchanges offer high leverage as high as 100x in the original position. This high leverage combined with the volatile environment of the crypto market can result in large liquidations taking place at once.

The key metric to look at in this case is the “total futures liquidations”, which shows the total amount of both short and long liquidations that are taking place in the Bitcoin futures market. A chart of this metric over the past few months shows that the value has been steadily increasing.

This recent surge in liquidations is a sign of the bullish sentiment in the crypto market as Bitcoin pushes further and further into new price records. Although the crypto market is still volatile, it appears that investors are feeling confident in the current market conditions.

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