“Buy The Dip” Sentiment Fails To Save Crypto Market, New Data Reveals Why
June 27 2022 - 6:16PM
NEWSBTC
Since crypto prices have fallen to their lowest point, now is the
ideal time to “Buy-the-Dip.” But during these brief price declines,
traders appear to be shorting cryptocurrency more than they are
buying it. “Buy-the-Dip” Sentiments Does Not Stop Crypto Shorting
More short sales or shorting occur in altcoins than in bitcoin. In
the past day, short holdings in Bitcoin (BTC) have averaged roughly
51% across exchanges, while short positions in altcoins have
averaged about 55%. BTC/USD hovers around $20k. Source: TradingView
Santiment, an on-chain analytics tool, states that data on the
average funding rate for Bitcoin and altcoins relative to the price
of bitcoin shows that traders continue to short altcoins at every
minor decline. The long/short ratio for Bitcoin, in contrast, is
unchanged despite price swings. “As prices gradually fell on
Sunday, traders have shown that though they may proclaim to be
buyingthedip, they are shorting more on these mini drops.
Interestingly, this only applies to altcoins right now, indicating
that Bitcoin is being flocked to as the safe haven.” According to
Coinglass data, traders kept shorting crypto on Monday. In the last
24 hours, a $25 million liquidation of Ethereum (ETH) witnessed 56
percent shorts. Polkadot (DOT), Solana (SOL), XRP, Cardano (ADA),
and BNB, meanwhile, saw 55 percent, 59 percent, 63 percent, 67
percent, and 53 percent shorts. Related reading | Bitcoin Perpetual
Open Interest Suggests Short Squeeze Led To Crash Bitcoin and
Altcoin Short Selling. Source: Santiment It’s interesting to note
that in the past 24 hours, short positions in Tether (USDT) have
increased by 85% across exchanges. Some short sellers think that
Chinese real estate brokers back the majority of Tether’s assets in
commercial paper. Since the previous month, USDT has experienced
significant redemptions, causing its market cap to drop close to
$66 billion. Amidst a dim market outlook, hedge funds are also
progressively shorting the U.S. dollar-pegged stablecoin Tether
(USDT). Liquidation OF Altcoins Rises Amid Short Selling
Liquidations are also increasing as traders continue to short
altcoins. Altcoins that were actively traded in the morning are
currently in the negative. Due to a recent increase in liquidation,
the price of Ethereum (ETH) has decreased by around 4% during the
past 24 hours. Other altcoins have also given up gains and are
currently declining. Related reading | Doom To Fail: Tether Shorts
Pile In As Hedge Funds Seek To Profit From Crypto Winter
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