- Short positions have taken successive hits in recent days.
- The market could see more liquidations as more assets reach new price levels.
The crypto market saw another round of significant liquidations during its last trading session on November 9, driven by moves in major coins like Bitcoin [BTC] and ether [ETH].
The market reacted strongly as these assets reached new price levels, leading to significant liquidations, especially for short positions.
As indicators such as the Fear and Greed Index approach extreme levels, market watchers are preparing for possible further liquidations.
Market liquidations exceed $280 million
On November 6, when Bitcoin hit a new all-time high of $76,000, market liquidations spiked above $600 million.
This included nearly $427 million in short liquidations, marking the highest level of short liquidations in more than six months. Long liquidations totaled approximately $184 million.
More recently, on November 9, market liquidations remained high, exceeding $280 million.
According to data from Mint glassShort positions continued to be the hardest hit, accounting for approximately $189 million of the total liquidation volume.
Source: Coinglass
By comparison, long liquidations were about $92 million. According to the latest update, the short liquidation volume was almost $120 million, while the long liquidation volume was approximately $22 million.
This pattern suggests that short traders are incurring significant losses when betting against the upward movement of major crypto assets.
Major assets affected by market liquidation
Over the past 24 hours, the price of Bitcoin has risen more than 3% and is approaching the $80,000 mark – a new all-time high.
Coinglass data shows that Bitcoin led the liquidation volumes, with liquidations totaling more than $100 million in the past day.
Short liquidations for Bitcoin alone reached $87 million, while long liquidations totaled around $13 million.
Ethereum also recorded significant liquidation volumes, ranking second behind Bitcoin. Ethereum saw over $56 million in short liquidations and another $13 million in long liquidations.
Other assets hit by significant liquidation volumes included Dogecoin, which saw approximately $16.7 million in short and $4 million in long liquidations.
Solana [SOL] and Sui [SUI] both also experienced substantial liquidation volumes, with short positions of $13 million and almost $13 million respectively, while long liquidations amounted to $3.7 million and $1.3 million.
What’s next for the market?
Current levels of market liquidation are influenced by increased investor sentiment, as evidenced by the crypto Fear and Greed Index. At the time of writing, the index stands at 78, reflecting a state of ‘extreme greed’.
This increased positive sentiment, coupled with the fear of missing out (FOMO), pushes more traders into active positions, which in turn could lead to additional market liquidations.
With the market showing signs of overheating, traders and investors should remain cautious.
The increased activity could push prices higher, but it also increases the likelihood of more liquidations if the market corrects or reverses.
With Bitcoin approaching record highs and other major assets following suit, the potential for volatility remains high.
If the Fear and Greed Index continues to rise, the crypto market could see even more substantial liquidations in the coming days, especially among leveraged positions.
