Despite yesterday’s 8% drop in the price of Bitcoin (BTC) that scared many market ups, long positions in the altcoins have seen only slight declines, with Ether (ETH) challenging the trend with a slight test of recovery from recent record highs in Bitfinex.
However, the altcoins‘ bearers are rapidly entering the game, with many altcoins accumulating in the midst of the recent fall in Bitcoin’s price.
Many bullish players are still holding on to the increase in short contracts, several major crypto assets could see an increase in settlements regardless of the direction the markets ultimately take.
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BTC’s long term contracts are falling sharply
Lengths at Bitfinex fell by more than 10%, from 28,800 to approximately less than 26,000. BTC/USD shorts also experienced an increase of almost 16%.
The collapse also generated wholesale settlements on the derivatives exchanges, with more than $71 million in margin calls on BitMEX and $66 million on Binance Futures in the last 24 hours, the third largest daily settlements in the past month according to Cryptometer.
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Ether hopes that the bullish side will stand firm
While the altcoins did not see strong liquidations on the futures platforms, a strong spike in the shorts along with stubborn bullishers could create the perfect storm for an aggressive margin call round.
While many Bitcoin bullishers quickly became bearish, ETH long positions experienced a slight increase of 2.5%, currently testing recent record highs of 1.77 million on Bitfinex.
The persistent buying activity suggests that some market participants predict that Ether may continue to gain on the dollar despite the bearish signals in the Bitcoin markets.
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The Altcoins‘ shorts suddenly rise
However, the collapse of Bitcoin also led to an aggressive increase in short ETH/USD contracts, which shot up by more than 18% in less than 60 minutes.
Similar trends can be seen in other leading high yield markets, with Litecoin (LTC) long falling by only 2.5% as short positions increased by over 30%, and XRP bullish positions retreating by only 3.5% while short positions flew by 15% in a few hours.