A recent surge in the cryptocurrency market has devastated leveraged positions, particularly impacting short traders. Bitcoin (BTC) led the charge, rallying over 13% in the past week and surpassing $70,000 for the first time since the halving event last month. According to CoinMarketCap, BTC is now less than 5% below its all-time high (ATH) set in March.
Ethereum (ETH), the second-largest cryptocurrency, also experienced significant gains, surging 30% over the week and reclaiming a $450 billion market cap. ETH is now approaching the $4,000 level.
This market-wide recovery saw the total cryptocurrency market cap increase by more than 7% in just 24 hours, reaching $2.7 trillion, according to CoinGecko. Trading volumes also surged, doubling to $220.5 billion.
The price hikes brought volatility, impacting investors on both sides of the market. In financial terms, traders betting on price increases are known as going long, while those betting on price declines take short positions.
CoinGlass liquidation data from May 21 revealed that over $380.5 million in leveraged positions were liquidated. Short trades accounted for a significant portion of this, with over $294.3 million wiped out, while long positions saw liquidations of around $97.2 million.
Ethereum shorts were the hardest hit, with liquidations totaling over $104.9 million, the largest for any crypto asset. Bitcoin shorts followed closely with $83.1 million, and Solana (SOL) short trades came in third with $16.9 million in liquidations.
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