As most of you will know, Bitcoin has surged past the $7,000 mark having slumming in the bear market for quite some time. After the bull run hit, the coin rose up by more than 10% and the total market cap jumped by $20 million.
Despite the whole community jumping in glory at the news, the short sellers were left weeping in the corner after the upward trend has led to a loss of $180 million short positions.
One of the leading cryptocurrency exchanges around the globe, BitMex provides a somewhat bit of leverage for the short sellers. Short sellers can have a minimum of 10x leverage on the platform, if short sellers don’t profit they only lose out on 10% of the margin.
On the other hand, long sellers are on the same level as regular investors. This is because when the value of cryptocurrencies surges, they profit and when the market goes through a decline in the value of cryptocurrencies they see a loss.
With the price of Bitcoin going through an unexpected surge in the market, short sellers made a loss of around $180 million un under half an hour on BitMex. According to the mining company, Cumberland, liquidated shorts were estimated to be at about $10 million.