Futures traders betting on a downside in the crypto markets lost over $82 million in the past 24 hours as Bitcoin (BTC) recovers.
Future Traders Lose more than $82 million
Futures traders betting on a drop in the cryptocurrency markets have lost more than $82 million in the last 24 hours as the broader market recovered.
According to Coinglass data, bitcoin-tracked futures were responsible for a little more than $25 million in losses.
According to the data, nearly 64% of all futures traders were betting on falling prices.
Longs worth a little more than $45 million were liquidated. Liquidations occur when a trader’s leveraged position is forced to be closed by an exchange as a safety mechanism due to a partial or total loss of the trader’s initial margin.
This is most common in futures trading, which only tracks asset prices rather than spot trading, which involves traders owning the actual assets.
Bitcoin prices spiked after comments from Fed
During Asian hours on Wednesday, Bitcoin climbed to $43,000, while major altcoins soared as high as 19 percent at the time of writing.
The increase occurred shortly after Federal Reserve Chair Jerome Powell stated that the agency will combat the current high inflation environment, implying that the central bank may reduce its balance sheet more quickly this year.
Bitcoin futures were not the only ones to lose money. Long and short Ether positions totaled $31 million, while altcoin futures linked to Near and Dogecoin each saw nearly $6 million in liquidations.
As of this writing, nearly 40,700 trades have been liquidated in the last 24 hours, resulting in losses of over $124 million.
