Key Points
- The crypto market witnessed significant liquidations on November 9th, due to movements in Bitcoin and Ethereum.
- Market liquidations surpassed $280 million on November 9th, with short positions bearing the majority of the losses.
The recent days have seen short positions facing multiple setbacks. This trend may continue as more assets reach new price milestones.
Major Coins Drive Liquidations
The last trading session on November 9th was marked by substantial liquidations in the crypto market, spurred by movements in key coins like Bitcoin [BTC] and Ethereum [ETH]. These assets’ push into new price territories resulted in significant liquidations, particularly for short positions.
With indices like the Fear and Greed Index nearing extreme levels, the market is preparing for possible additional liquidations.
Market Liquidations Exceed $280 Million
Bitcoin’s new all-time high of $76,000 on November 6th triggered a spike in market liquidations, reaching over $600 million. This included nearly $427 million in short liquidations, the highest in over half a year. Long liquidations accounted for approximately $184 million.
On November 9th, market liquidations remained high, exceeding $280 million. Coinglass data shows that short positions were the hardest hit, making up about $189 million of the total liquidation volume. In contrast, long liquidations were around $92 million. The latest update indicates a short liquidation volume of nearly $120 million and a long liquidation volume of about $22 million.
This trend suggests that short traders are incurring significant losses as they bet against the upward movement of major crypto assets.
Market Liquidation Impacts Major Assets
Bitcoin’s price has increased by over 3% in the past 24 hours, nearing the $80,000 mark—a new all-time high. Coinglass data indicates that Bitcoin led the liquidation volumes, with over $100 million in total liquidations in the past day. Short liquidations for Bitcoin alone amounted to $87 million, while long liquidations were around $13 million.
Ethereum also saw substantial liquidation volumes, ranking second after Bitcoin. Ethereum experienced more than $56 million in short liquidations and an additional $13 million in long liquidations.
Other assets affected by significant liquidation volumes included Dogecoin, which saw around $16.7 million in short and $4 million in long liquidations. Solana [SOL] and Sui [SUI] also faced substantial liquidation volumes, with short positions at $13 million and nearly $13 million, respectively, and long liquidations at $3.7 million and $1.3 million.
Future Market Trends
The current market liquidation levels are influenced by increased investor sentiment, as shown by the crypto Fear and Greed Index. At the time of writing, the index is at 78, indicating “extreme greed”. This heightened sentiment, along with the fear of missing out (FOMO), is driving more traders into active positions, potentially leading to more market liquidations.
As the market shows signs of overheating, traders and investors are advised to remain cautious. The increased activity could push prices higher, but it also increases the chance of more liquidations if the market corrects or reverses.
With Bitcoin nearing record highs and other major assets following suit, the potential for volatility is high. If the Fear and Greed Index continues to rise, the crypto market may witness even more significant liquidations in the coming days, especially among leveraged positions.
