$386M in liquidations hit markets in 24 hours, with $246M in shorts squeezed after Fed decision.
Macro & Markets ·
Over the past 24 hours, cryptocurrency markets saw $386M in liquidations, with shorts accounting for the larger share at $246M against $140M in long positions, according to CoinGlass data. Zcash (ZEC) represented roughly $59M of the total, while Bitcoin and Ethereum each contributed approximately $98M in liquidations.
The disproportionate squeeze on short positions follows the Federal Reserve's policy decision, suggesting bearish traders were forced to cover positions as prices moved against them. This kind of liquidity event can create upward momentum in the near term as liquidation cascades trigger additional buying pressure.
However, the sustainability of such moves remains uncertain. Once the forced selling of shorts concludes, the underlying conviction behind the price move becomes clearer—and without fresh buying momentum, positions unwound at market extremes often see reversals as traders reassess risk.