Ethereum (ETH) Traders’ Short Position of $7.5 Million Sees Liquidation on BitMEX
Monday was a great day on the floor of the cryptocurrency exchange market for both traders and investors in major cryptocurrencies, with many cryptos rebounding in value, contrary to the industry-wide erstwhile bearish market.
But for one particular trader, it was a terrible day as his short position was liquidated, thanks to ethereum shooting past the $88.40 price point.
The cryptocurrency market raised the bar on Monday with Bitcoin, gaining more than 10 per cent during the day.
Major altcoins, after weeks of sluggish and bear market that caused widespread despondency among current and intending traders and investors, also recorded some increase in market value and price, following bitcoin’s price gains.
These improvements are coming on the heels of speculations and predictions about the market ending the year on a low note.
Many crypto traders have been doubling on their short positions, counting on the continued bearish trend and following predictions that there might be could new year-lows. The situation is similar to when optimistic investors take out long positions when the market is trading well.
Unfortunately, an Ethereum investor on Bitmex saw his short position result in a $7.5 million loss because of the gains. This data was reported via MitmexRekt, Bitmex’s automated account that tracks major liquidation happenings,
No trader saw this bullish start to the new week coming but market analysts said that the jump in coin price is largely caused by a short squeeze as a short of this market size is undoubtedly created through a high leverage.
As it stands, AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens is trading up at 11.6% which is a growth on the level in the last 24 hours. Ethereum, which makes up about 9.2% of the index, is up 10.6% on the day to $94.84.
This is a significant occurrence for the market that has not shown serious improvement since the turn of the year, with major cryptocurrencies falling in price and value.
It is expected that some experts’ projections that some of the top digital assets could end well at the end of the year, might hold true. If this happens, it will potentially bringing an end to the sluggish outlook of the market since the second (Q2) of the year.