Here’s how many short traders have added more than $45,000 in Bitcoin (BTC) liquidity

TL; DR

As typically happens when BTC goes in either direction, a certain group of overleveraged traders will feel the pain. The leading cryptocurrency soared past $45,000 for the first time in two years, leaving more than $140 million worth of liquidity on a daily basis.

The price of Bitcoin has been stagnant for over a week, hovering around $42,000 and even falling below that level in some cases. All this happened while many altcoins were rising and BTC was losing its dominance in the market.

The new year started on the same note but quickly changed. BTC continued its onslaught on Monday evening and shot above $43,000. That was the start of the spectacular rally that continued into the wee hours of Tuesday.

This has risen to $45,500, which means that the cryptocurrency has increased by about 7% in the last 24 hours. This price tag has not arrived since early April 2022.

Not only has the BTC price surge pushed its market capitalization to nearly $890 billion, but it has also regained some of its recently lost dominance over CMC, up to 51%.

Still, there are several altcoins that have made impressive gains. Solana and Avalanche lead with 10-11% jumps, followed by DOT (6.5%), MATIC (5%) and ATOM (6%) from the large caps.

These price increases resulted in over $140 million in outflows over the previous day, with over $110 million of the total coming from short positions.

According to data from CoinGlass, the total number of compromised traders is more than 45,000, the largest liquid order was $10.16 million and was carried out on Binance.