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Rising Bitcoin values result in $272 million in liquidations, elevating Tether USDT supply beyond 90 million.
Cryptocurrency traders faced liquidations exceeding $260 million in the past 24 hours due to the rising prices of digital assets.
According to data from CoinGlass, the majority of these liquidated positions, approximately $170 million, were from short positions—traders who anticipated price declines. This represents the fourth-largest total of short liquidations recorded in a single day over the last four months.
Bitcoin (BTC) traders were particularly affected by the losses. Short sellers incurred nearly $92 million in losses as the digital asset’s price briefly exceeded $44,000, fueled by ongoing optimism regarding a potential spot exchange-traded fund (ETF) approval in the U.S. The leading asset’s price has since retraced to $43,719 as of the latest data from CryptoSlate.
Traders betting against Ethereum (ETH) also faced around $35 million in liquidations. During this timeframe, ETH’s price reached a new yearly peak above $2250, marking its highest point since the unexpected collapse of Terra last year.
Additionally, traders with short positions against alternative cryptocurrencies such as Solana, XRP, Dogecoin, and ORDI also experienced significant losses during this period.
Across various exchanges, Binance and OKX reported the largest liquidations, with short traders losing nearly $110 million on these platforms.
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Tether spikes above 90B
The bullish crypto market also led to Tether’s USDT stablecoin supply surpassing a new all-time high of 90 billion, as per data from CryptoSlate.
In November, the circulating supply of USDT grew by 4.5 billion amid increasing market optimism for a spot ETF. Insights from CryptoSlate indicated a strong 96% correlation between the circulating supply of USDT and Bitcoin’s price movements during this period.
Analysts have noted that this impact on Bitcoin’s price may become more pronounced as the USDT supply expands.
The rising supply of USDT also suggests enhanced liquidity in the crypto market as additional capital flows into the ecosystem. In a recent communication to investors, Markus Thielen, the head of research at Matrixport, stated:
“The most important chart and signal is the daily minting from Tether, which shows that nearly $7 billion is being moved into crypto. This flow is front-running the Bitcoin spot ETF approval and driving crypto prices higher.”
The post Soaring Bitcoin prices liquidate $272M, pushes Tether USDT supply above 90M appeared first on CryptoSlate.
