The unpredictable and highly volatile cryptocurrency market takes a huge toll on the short-sellers. The unexpected bull run of the market usually catches the short-sellers off guard. Today’s Bitcoin [BTC] and other cryptocurrencies’ sudden hike has let the short-sellers taking a huge blow again.
Unlike long-sellers, short-sellers profit when the cryptocurrency market is in the bear’s grip. They borrow cryptocurrency and sell them when the market is on a bull run and later on, buy the same amount of cryptocurrencies when the market is crashing.
BitMEX, a cryptocurrency exchange platform provides liquidity to these short-sellers. The short sellers took a huge blow during last week’s bull run as well. According to the CEO, almost $230 million short positions were liquidated within 15 minutes. After the liquidation, Arthur Hayes said that since BitMEX is a futures exchange platform, for every short there is a long.
According to him, the Shorts witnessed a little pop the previous week since most of the people got into the short position at the same time. The exact reason for the same to occur this time is unclear.
BitMEX’s short position Twitter bot handle which has a track of $2 million or higher liquidations only has been continuously updating the posts on all the shorts that are being sold on BitMEX since today morning. According to Big Rekts, more than $84 million shorts have been liquidated on BitMEX.
Tyjj889, a Redditor said:
“Ouch… every little thing is going to be alright, for the bulls-Bob marley”
Jameson Boozepill, a Twitterati says:
“I can’t help but feel a bit satisfied by this.”
Earlier today, Bitcoin [BTC] breached the $8000 mark. According to CoinMarketCap, at press time, Bitcoin [BTC] was trading at $8179 and has seen a significant rise of more than 6% in the past 24 hours.