After the sharp declines on Thursday, the markets managed to recover, however, investors who opened short positions faced liquidations of up to 143 million dollars in the last 12 hours alone.
Bitcoin (BTC) and other major cryptocurrencies, especially Ethereum (ETH), gained close to 10% in 24 hours and reached Wednesday’s closing levels again. Bitcoin, on the other hand, managed to rise from Thursday’s low of $ 34,725 to $ 38,400.
The recovery, which started in the morning hours in the US on Thursday, has caused over $184 million in losses due to liquidations in crypto futures in the past 12 hours. According to data from Coinglass, around 73% of traders were betting against the market “short” or bullish.
Crypto exchange OKX, the best among other crypto futures exchanges, has over $52 million short liquidated and $23 million comes from Bitcoin futures alone. It was followed by Binance with a loss of $25 million from liquidated deficits and FTX with a loss of $16 million.
Overall, in the last 12 hours, $89 million of Bitcoin futures has been liquidated, while $53 million has been liquidated. Ethereum (ETH) Futures and Terra (LUNA) futures liquidated $5.86 million.
The losses contributed to the 24-hour liquidation totaling $405 million. Some 83,000 individual trading accounts suffered losses, and the largest liquidation order was on Bitmex in a bitcoin futures trade worth over $7.95 million.
The recovery movements in the global markets were followed by the recovery in the crypto money markets. The MSCI Asia-Pacific Index, which tracks companies in Asia, rose almost 1 percent on Friday after falling 3.1 percent on Thursday. Benchmark stock indices rose across Europe and the Stoxx Europe 600 index gained more than 1%. In the US, the S&P 500 Index closed 1.5% higher on Thursday as the country tightened sanctions against Russia.
Some analysts say that the demand for Bitcoin and other cryptocurrencies may increase in the coming days as they are seen as liquid instruments.
“Right now, the markets have the highest demand for liquid instruments, which makes Bitcoin slightly less risky than altcoins,” Alex Kuptsikevich, a senior financial analyst at FxPro, told CoinDesk. “Further deterioration in the financial situation is likely to benefit the first cryptocurrency as a capital savings tool for investors from Ukraine, Russia and some nearby countries.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.