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Of that, more than $ 25 million in losses were in Bitcoin futures as inflationary assurances from the Fed triggered a recovery in prices.
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Futures traders betting on the downturn in cryptocurrency markets have lost more than $ 82 million in the past 24 hours as the market as a whole has recovered slightly.
Just over $ 25 million was in Bitcoin futures, according to Coinglass. The data shows that nearly 64% of all future traders have bet on the fall in prices.
Longs worth just over $ 45 million were liquidated. A liquidation occurs when an exchange forcibly closes a leveraged trader’s position as a safety mechanism due to a partial or total loss of the trader’s initial margin. This happens mainly in futures trading, which only tracks asset prices, as opposed to spot trading where traders own the actual assets.
Bitcoin surged to $ 43,000 early Wednesday morning during the Asian markets open. While the major altcoins continue to rise as of this writing. The jump came shortly after Federal Reserve Chairman Jerome Powell said the agency would fight the current high inflation environment, signaling that the central bank could cut its balance sheet at a faster pace this year.
Some crypto traders and investors see Bitcoin as a hedge against inflation, while others see it as a risky asset like stocks that respond to monetary tightening caused by high inflation.
The sudden move on Tuesday caught traders by surprise. Bitcoin-related futures on crypto exchange Binance showed traders lost $ 15 million in the past 24 hours, with OKEx following with a $ 11 million liquidation. About 60% of all Bitcoin traders were short on two exchanges.
Futures traders betting on Bitcoin fall lose $ 82 million in last 24 hours
The losses were not limited to Bitcoin futures. Ether traders gained $ 31 million in long and short positions, while Altcoin futures linked to Near and Dogecoin lost almost $ 6 million each.
Over the past 24 hours, more than 40,700 trades have been liquidated, with total losses at the time of writing exceeding $ 124 million.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
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