Caught in the crossfire: how long and short liquidations shape the crypto market’s future

2 years ago

Quick Take

Liquidations were 1 of the main talking points during the 2021 and 2022 cycles — agelong being liquidated for the amended 2 years.
Many reasons liquidations were plentifulness successful 2021 compared to 2022 were owed to leverage, whale activity, and marketplace sentiment.
As 2021 was a bull market, marketplace sentiment was beardown to the upside, and prices continued to increase. Hence, agelong liquidations connected tiny pullbacks were obliterated.
Into 2022, a carnivore market, and prices continued to spell down 75% from their all-time high, investors wanted to spell agelong astatine immoderate moment; however, they continued to get burnt.
Into 2023, it has been a premix of abbreviated and agelong liquidations; shorts did instrumentality rod presumption successful 2023 and were connected the incorrect side. But present you tin spot liquidations are precise akin successful size, suggesting a neutral market.