Following the current uptrend in the cryptocurrency market, bitcoin (BTC) has risen above $32,000 in the past two days. Altcoins have also begun to rise, with some of them, such as Cardano, showing double-digit growth.
Despite this, the current state of the market has brought losses to traders who have opened a short position in BTC. On-Chain College’s Twitter account reports that bitcoin positions worth $25 million were liquidated within an hour.
Upon closer examination, BTC holders who had opened shorts lost profits because they made the mistake of expecting further declines.
A cryptocurrency short position is when traders take coins from brokers and sell them to other cryptocurrency holders, assuming that the price of those coins will fall in the future. If the price of the coin falls, these traders can buy the coin at a lower price and return it to the brokers.
Bitcoin is currently fluctuating just above $32,000, which is fraught with losses for traders with short positions. In the past 24 hours, BTC has added 4.6% overnight and 9.7% over the week.
In February 2022, there was a liquidation of shorts worth almost $143 million as traders also didn’t wait for the rate to decline.