Explosive moves in ETH, ADA and DOGE have resulted in $800 million in short liquidations, the highest since 2023
Shaurya Malwa | Edited by Parikshit Mishra Updated May 9, 2025 3:50 PM Published May 9, 2025 3:32 AM
A massive rally in cryptocurrencies, led by a 20% rise in Ether (ETH), has seen short positions liquidated by more than $750 million in the last 24 hours, marking the highest single-day total for bearish trades since 2023.
According to CoinGlass, more than 84% of total liquidations were short positions, with leading altcoins rising 10-20% in the hours since Thursday evening.
Ether led the gains, rising 20% to top $2,000 for the first time since early March. Cardano’s DOGE and ADA rose more than 10%, driven by bullish sentiment and active trading, while Solana’s SOL, BNB, and XRP all rose at least 7%.
Liquidations occur when an exchange forcibly closes a leveraged trader’s position due to insufficient margin. This happens when a trader is unable to meet the margin requirements for a leveraged position, meaning they do not have enough funds to maintain an open trade.
Significant liquidations may indicate market extremes, such as panic selling or buying. A cascade of liquidations may signal a turning point in the market, where a price reversal may become inevitable due to an overreaction of market sentiment.
The rally in cryptocurrency markets came after Bitcoin surpassed $100,000 on Thursday amid positive expectations surrounding the US-UK trade deal.
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