Bitcoin and Ethereum's Surge Sparks Significant Short Liquidations in Crypto Derivatives Market

The cryptocurrency derivatives market has witnessed a major wave of short position liquidations as Bitcoin (BTC) and Ethereum (ETH) extend their strong upward momentum. Ethereum led the way with a notable price increase of 3.69%, while Bitcoin achieved yet another record high. Although the volume of liquidated short positions has declined compared to the previous day, the trend underscores a significant impact on traders betting against market gains.

$327 Million Liquidated in 24 Hours

According to data compiled by Coinglass on November 7 (Korean Standard Time), the total liquidation volume across the derivatives market over the past 24 hours reached $327.41 million (approximately KRW 457.8 billion). This marks a 13.10% decrease from the prior day’s liquidations.

Breaking down the figures, $223.19 million (around KRW 312.2 billion) were liquidated from short positions, while $104.22 million (approximately KRW 145.7 billion) came from long positions. This disproportionate liquidation of short positions highlights the market's continued upward trajectory.

Ethereum Takes the Lead in Liquidation Volume

Ethereum emerged as the top digital asset in terms of liquidation volume. Over the last 24 hours, $76 million (approximately KRW 106.3 billion) worth of ETH positions were liquidated, with the majority being short bets. Ethereum's price surged 3.69% during the same period, reaching $4,677.

Bitcoin followed closely with $63.9 million (around KRW 89.3 billion) in liquidations. Short positions accounted for $48.25 million (approximately KRW 67.4 billion), further underscoring the bearish traders’ losses. While BTC experienced a relatively modest price increase of 0.73%, it reached a fresh all-time high of $124,406, driving confidence in its upward potential.

Altcoins Witness Substantial Liquidations

The bullish momentum extended to alternative cryptocurrencies, which also saw significant short liquidations amid price rallies. Solana (SOL) experienced liquidations totaling $11.09 million (approximately KRW 1.55 billion). Ripple (XRP) traders saw $3.81 million (around KRW 530 million) in liquidations.

Popular tokens like Dogecoin (DOGE) and Binance Coin (BNB) registered liquidations of $6.48 million (approximately KRW 900 million) and $6.33 million (around KRW 880 million), respectively.

One of the most striking movements came from Plasma (XPL), a lesser-known altcoin that surged by 20.54%. This dramatic price climb triggered short position liquidations totaling $7.78 million (approximately KRW 1.09 billion), more than double the $3.9 million (approximately KRW 550 million) liquidated from long positions, reflecting the heavy speculative activity surrounding the cryptocurrency.

Open Interest and Leverage Positions on the Rise

Key market indicators continue to paint a picture of optimism and sustained leverage. Despite a 2.81% dip in 24-hour trading volumes to $30.8 billion (approximately KRW 42 trillion), open interest—a measure of ongoing futures contracts—edged up by 3.36% to $23.2 billion (approximately KRW 32 trillion). This increase signals that traders are maintaining significant leveraged positions, betting on further upward movement in cryptocurrency prices.

Market Sentiment Fuels Optimism

Investor sentiment remains firmly aligned with the ongoing crypto rally. The Fear & Greed Index, as provided by Alternative data, clocked in at 70 points on November 7, indicating a market leaning toward "Greed." While this is a slight decline from the prior day’s score of 71, it represents a clear improvement from last week’s "Neutral" reading of 50.

This optimistic outlook suggests that market participants are operating with high confidence in the prevailing bullish trend. However, the reliance on leverage and heightened speculative activity could magnify liquidity risks, which investors should carefully monitor.

---

The crypto derivatives market continues to show robust activity as top cryptocurrencies like Bitcoin and Ethereum lead upward price movements, triggering widespread short liquidations. Bolstered by growing investor confidence and optimistic sentiment, the market’s momentum remains strong. Still, the persistent leverage-driven dynamics of the market highlight the need for vigilance against potential liquidity risks. Whether this bullish wave sustains or shifts, traders must prepare for volatility in the fast-evolving digital asset landscape.