Data shows around $280 million in cryptocurrency futures shorts have found liquidation in the past day as Bitcoin has touched $57,000.

Bitcoin Has Rallied Towards The $57,000 Level In The Past Day

After the initial rally to the $52,000 level earlier in the month, Bitcoin slumped into an extended spell of sideways movement, refusing to show any strong momentum in either direction.

Things have very quickly changed for the cryptocurrency in the past day, however, as its price has finally shown a sharp rally. The chart below shows what the coin’s trajectory has looked like recently.

As is visible in the graph, Bitcoin’s tight consolidation has just decompressed in spectacular fashion, as the asset has soared almost 11% within the past 24 hours.

In this latest burst of upward momentum, BTC has managed to break the $57,000 level, a feat that the coin last only achieved in November 2021.

As is usually the case, Bitcoin has pulled up with itself the rest of the sector, with coins across the board enjoying green returns. Given the sharp price action in the market, it’s not surprising that the futures side of the sector has seen chaos of its own.

Crypto Futures Market Has Just Registered $364 Million In Liquidations

According to data from CoinGlass, the latest volatility in the market has resulted in a large amount of liquidations on the derivative side.

Below is a table that shows the relevant numbers for the past 24 hours:

From the table, it’s apparent that the cryptocurrency futures market as a whole has gone through almost $364 million in liquidations during the past 24 hours. Out of these, $280 million came from short contracts alone.

This means that the shorts made up for about 80% of the total liquidations. This disparity between the longs and shorts isn’t anything unexpected, though, as the liquidations today were majorly triggered by prices across the assets shooting up.

In terms of the individual contributions from the assets towards this mass liquidation event, it would appear that Bitcoin made up for more than half of the flush with about $190 million in contracts involved.

It would also appear that the second-placed asset by market cap, Ethereum (ETH), has been second here, too, with about $62 million in liquidations. Out of the altcoins, Solana (SOL) has been at the top of the charts with $9 million in liquidations.

Mass liquidation events like today’s (popularly called squeezes) aren’t exactly something that are rare occurrences in the cryptocurrency sector. This is due to the fact that most coins see significant volatility on the regular, as well as because of the market generally being overleveraged.