RATE Group | BitMEX Liquidations Shows Why Bitcoin Abruptly Surged by $1,000 Overnight
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BitMEX Liquidations Shows Why Bitcoin Abruptly Surged by $1,000 Overnight

19 Dec BitMEX Liquidations Shows Why Bitcoin Abruptly Surged by $1,000 Overnight

Posted at 10:32h in Bitcoin News by

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Most of the liquidations that occurred on BitMEX on December 18 were short contracts. It shows that over-leveraged shorts were squeezed out, pushing the bitcoin price up so quick in a short time frame.

70% of liquidations were shorts

According to Skew Research, the overwhelming majority of bitcoin contract liquidations on BitMEX were shorts.

The research firm said:

“Not that many buy liquidations despite bitcoin jumping nearly $1,000 yesterday 70% of liquidations were SELL in last three days despite bitcoin price unchanged! Longs seem more leveraged than shorts.”

bitcoin liquidations

BitMEX bitcoin short vs long contract liquidations (Source: Skew Research)

During a squeeze, a cascade of short or long liquidations send the bitcoin price up or down in an intense manner, often causing 10 percent movements on a single day.

On December 18, the bitcoin price rose from around $6,410 to nearly $7,500, by almost 17 percent within a matter of hours.

Based on the performance of BTC over the past several months, it…

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