Coinalyze data shows that traders shorting Bitcoin Cash (BCH) have lost the most money in over two years as the price spiked to $320 last week.
Short and long futures tracked by BCH have accumulated losses of over $25 million, which may have contributed to the sudden spike in price. A short position is defined as shorting any asset, while a long position is a bet on a price rise.
As of Monday, funding rates on all exchanges that list BCH futures have fallen into negative territory . Negative funding rates indicate that short traders are dominant and are willing to pay long traders to maintain their positions.
BCH traders are paying up to -0.05% to exchanges every 8 hours, which means that short interest in the token is rising.
A forced closeout is when an exchange forces a trader to close a leveraged position due to a partial or full loss of the trader's initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (does not have sufficient funds to maintain the trade).
Large-scale liquidations may signal local tops or bottoms of sharp price swings, which may allow traders to position themselves accordingly.
Last week's move may have been due to increased trading volumes in BCH on the Korean exchange (whose traders are known for their irrational exuberance) and the launch of EDX Markets, a new exchange backed by traditional financial giants Fidelity Digital Assets, Charles Schwab and Citadel Securities a new exchange backed by traditional financial giants Fidelity Digital Assets, Charles Schwab and Citadel Securities. BCH is supported as well as Bitcoin (BTC), Ether (ETH) and Litecoin (LTC).
Short and long futures tracked by BCH have accumulated losses of over $25 million, which may have contributed to the sudden spike in price. A short position is defined as shorting any asset, while a long position is a bet on a price rise.
As of Monday, funding rates on all exchanges that list BCH futures have fallen into negative territory . Negative funding rates indicate that short traders are dominant and are willing to pay long traders to maintain their positions.
BCH traders are paying up to -0.05% to exchanges every 8 hours, which means that short interest in the token is rising.
A forced closeout is when an exchange forces a trader to close a leveraged position due to a partial or full loss of the trader's initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (does not have sufficient funds to maintain the trade).
Large-scale liquidations may signal local tops or bottoms of sharp price swings, which may allow traders to position themselves accordingly.
Last week's move may have been due to increased trading volumes in BCH on the Korean exchange (whose traders are known for their irrational exuberance) and the launch of EDX Markets, a new exchange backed by traditional financial giants Fidelity Digital Assets, Charles Schwab and Citadel Securities a new exchange backed by traditional financial giants Fidelity Digital Assets, Charles Schwab and Citadel Securities. BCH is supported as well as Bitcoin (BTC), Ether (ETH) and Litecoin (LTC).