The entire cryptocurrency market boomed today, with most cryptocurrencies breaking their resistance points and rising by double digits. The rally was speculated to be fueled by Bitcoin [BTC], the largest cryptocurrency by market cap, with the coin breaking its $5000 mark resistance in a matter of minutes. On Coinbase, the highest price for the cryptocurrency was recorded to be $5121.
However, this unanticipated rally resulted in the liquidation of Bitcoin’s short position on BitMEX, a Bitcoin Mercantile exchange platform. This in turn, led to several short sellers bearing the brunt of the bull market. It was reported that over $400 million worth of Bitcoin shorts were liquidated today following the sudden spike in Bitcoin prices.
Cerulean-skies, a Redditor said,
“Hahahaha this is pretty funny. That’s great good capture buddy! Tonight was crazy huh? My internet went out right as everything started to take off, my god thankfully it came back on quickly, but conspiracy much? :P”
Short sellers are those traders who profit during the bearish season of the cryptocurrency market. These traders borrow funds and sell them during the bullish season, following which they buy back the sold cryptocurrencies when the market crashes. This is the opposite of long selling, where traders make profit during the bullish season.
This service is available on all platforms offering margin trading, with BitMEX being the leading exchange. The exchange also provides up to 100X leverage.
The Rhythm Trader, a Twitter user said,
“$413,700,000 in shorts were liquidated on Bitmex. Buy bitcoin, bye banks. “
Easy-Money2025, a Reddit user said,
“The long awaited bull market is here, everyone in the financial sector knows now is the time to push that button or be left out at these prices. Everyone holding wants at least 1 full BTC, not enough to go round! $150k before halving!!!!”
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