Nearly $400 million liquidated, short sellers "flee" as the cryptocurrency market rebounds

The cryptocurrency derivatives market has just experienced a wave of strong liquidations over the past 24 hours, totaling $397 million. Notably, short positions accounted for the majority of losses, with $330.7 million liquidated, while long positions only accounted for $66.34 million. This indicates that the bearish betting side was caught off guard by the market’s upward momentum.

The 12-hour timeframe recorded the heaviest liquidation, nearly $275 million, reflecting a relatively sustainable upward trend rather than just a short-term rebound. When short liquidations dominate, the market often experiences forced buying pressure, forcing short sellers to close their positions, thereby amplifying the upward momentum and price volatility.

Although this does not guarantee that the upward trend will continue, the data shows that bearish leverage has been significantly “shaken off,” substantially changing the short-term market landscape.