Traders betting against Bitcoin Cash (BCH) lost the highest amount in over two years amid a price spike to the $320 level last week, according to Coinalyze data. This may have been due to the sudden spike in shorts and longs cumulatively losing over $25 million on BCH-tracked futures. Funding rates have fallen negative across all exchanges that list BCH futures, indicating that short traders are dominant and are willing to pay long traders to remain in their positions. BCH traders are paying funding rates as much as -0.05% every 8 hours in fees to exchanges, implying short interest in the tokens is rising. Liquidation, when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin, can signal the local top or bottom of a steep price move. Last week’s moves likely came amid increased BCH trading volumes on South Korean exchanges and the launch of EDX Markets, a new exchange backed by traditional finance heavyweights Fidelity Digital Assets, Charles Schwab, and Citadel Securities.
Bitcoin Cash Traders Lose Over $25 Million Amid Price Spike
