What Happened
According to data from on-chain analytics platform CryptoQuant, $229 million worth of short positions were liquidated in the crypto perpetual futures market after Bitcoin breached the $43,800 mark.$BTC market price($43.8K) spiked by +17.4% in the past 4 days - $229.2M short positions were liquidated in the perpetual markets in the past 4 days - Aggregated funding rate is currently negative
Funding rates typically indicate traders’ sentiment in the perpetual swaps market. Negative funding rates indicate that short position traders are dominant and are willing to pay long traders. Negative funding rates indicate that a large proportion of traders are bearish.
Data from Coinglass confirms even more short positions were liquidated in the last 24 hours. A total of 66,964 traders were liquidated for $255 million, of which $182 million were short positions.
In the last day, $91.9 million BTC, $37 million Ethereum, $5.7 million Shiba Inu., and $1.81 million Dogecoin shorts were liquidated.
After three months in a persistent downtrend, #Bitcoin has experienced a counter-trend rally, pushing above $44k.
Short liquidation dominance has also increased, suggesting that a short squeeze is a partial driver of the move.
— glassnode (@glassnode) February 7, 2022
