Bitcoin, Ethereum, and Dogecoin Rise Leads to $500M in Short Liquidations
Nearly $530 million was lost on short positions, or bets on prices falling, amid a general decline in leveraged rates.
Author: Shaurya Malwa | Edited by: Parikshit Mishra Updated: Apr 23, 2025 1:11 PM Published: Apr 23, 2025 6:08 AM
Key points:
- Futures bets on rising cryptocurrency prices have suffered losses of over $500 million due to a market rally driven by potential tariff cuts between the US and China.
- Bitcoin led the market rally, rising from $88,000 to over $93,500, while major cryptocurrencies such as ETH, ADA and DOGE also saw significant gains.
- The biggest short liquidations occurred on Bybit and Binance, where a single ETH futures position on Binance lost over $4.5 million.
Futures bets on rising cryptocurrency prices have lost more than $500 million in the past 24 hours as a sharp jump fueled by potential tariff cuts on China led to the biggest short liquidations since October.
Bitcoin (BTC) has risen from Tuesday's low of $88,000 to more than $93,500 in early Asian trading, data shows, driving gains in the broader market, with ether (ETH), Cardano's ADA and dogecoin (DOGE) all up 14%. Solana's SOL and XRP are up 7%, with all of the top 100 tokens by market cap in the green.
Meanwhile, Sui Network's SUI, UniSwap's UNI, and Near Protocol are all showing steady gains, up a whopping 18%. Memecoin mog (MOG) has jumped 30%, continuing its trend of acting as a beta bet on ETH's move.
Nearly $530 million in shorts, or bets on prices falling, suffered losses amid a general decline in leveraged bets. The data shows that Bybit saw the most short liquidations at $234 million, followed by Binance at $100 million and Gate at nearly $70 million.
The largest single liquidation was recorded on Binance – an ETH futures position worth over $4.5 million.
Liquidations occur when an exchange forcibly closes a leveraged trader's position due to a partial or total loss of the trader's initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position, i.e. when they do not have enough funds to maintain an open trade.
The rise in cryptocurrency prices came after Trump said he planned to be “very nice” to China in trade talks and that tariffs would be reduced if the two countries could reach an agreement, indicating that caution among traders could dampen current sentiment.
“Worries about an escalating trade war have eased as traders largely believe the US and China will reach a trade deal in the coming weeks,” Jeff May, chief operating officer at BTSE, said in a Telegram message to CoinDesk. “Whether this will be temporary or not remains to be seen.”
“But the last few weeks have shown us that the likelihood of rates going down and the US dollar depreciating is high, which explains the rise in Bitcoin. If the US dollar weakens, there aren't many other currencies to turn to, as many other countries could also depreciate their currencies. This could set the stage for Bitcoin to become a major store of value.
Источник
