Share this article
Short Traders Lose $82M as Bitcoin Bounces to $43K
A little over $25 million of the losses came from bitcoin-tracked futures as inflation reassurances by the Fed caused a recovery in prices.
Updated May 11, 2023, 4:46 p.m. Published Jan 12, 2022, 7:01 a.m.
Futures traders betting on a downside in the crypto markets lost over $82 million in the past 24 hours as the broader market staged a brief recovery.
A little over $25 million of the losses came from bitcoin-tracked futures, according to Coinglass data. Nearly 64% of all future traders were betting on falling prices, the data shows.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
A bit over $45 million worth of longs were liquidated. Liquidations occur when an exchange forcefully closes a trader’s leveraged position as a safety mechanism due to a partial or total loss of the trader’s initial margin. This happens primarily in futures trading, which only tracks asset prices, as opposed to spot trading, where traders own the actual assets.
Bitcoin rose to $43,000 during Asian hours on Wednesday, while major altcoins surged as high as 19% at the time of writing. The jump came soon after U.S. Federal Reserve Chair Jerome Powell said the agency will combat the current high inflation environment, signaling that the central bank may reduce its balance sheet at a faster pace this year.
Some crypto traders and investors view bitcoin as a hedge against inflation while others consider it a risk asset like stocks, which react to tightened monetary policy resulting from high inflation, as reported.
Tuesday’s sudden move caught traders unaware. Bitcoin-linked futures on crypto exchange Binance saw traders lose $15 million in the past 24 hours, with OKEx following closely behind with $11 million in liquidations. Some 60% of all bitcoin traders were short on the two exchanges.
Losses were not limited to bitcoin futures. Ether traders saw $31 million across long and short positions, while altcoin futures linked to Near and Dogecoin saw nearly $6 million in liquidations each.
Over 40,700 trades were liquidated in the past 24 hours, with overall losses crossing $124 million at the time of writing.
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Aave falls 18% over week as dispute pulls down token deeper than major crypto tokens
The move added to selling pressure that had already been building since the governance proposal moved to a Snapshot vote.
What to know:
- AAVE token has dropped 18% in the past week, making it the worst performer among the top 100 cryptocurrencies.
- The decline is likely linked to a governance dispute over control of Aave's brand and public channels.
- Despite founder Stani Kulechov purchasing $12.6 million worth of AAVE, the broader selling pressure continues.
Top Stories
