Long BTC liquidations dominated majority of 2022

Hull Invest

Long positions in Bitcoin (BTC) will be much more dominant than short positions in 2022, according to the report. of crypto slate Analysis of grassnode data.

Since January 25, there have been 270,000 long and 159,000 short BTC liquidations this year.

Annual total of BTC liquidations
Annual total of BTC liquidations

The chart above shows the sum of all BTC liquidations across all exchanges. The green area represents the annual total of long liquidations and the red area represents the total number of short liquidations. Investors tended to invest in long-term positions and continued to liquidate throughout the year.

Catastrophes this year, such as the collapse of Terra and FTX, as well as macro events such as the war between Russia and Ukraine, have influenced investor behavior.

of crypto slate The analysis reveals that long positions in BTC increased exponentially after the Terra collapse, starting a bear market. The October numbers show that long-term BTC holders have started liquidating towards the end of the month.

Long-term clearing advantage

The long-term liquidation dominance also supports the above findings. The chart below shows the percentage of long liquidations since January 25th.

BTC long liquidation rate
BTC long liquidation rate

Short liquidation percentage is calculated by dividing the number of long liquidations by the sum of both long and short liquidations. A metric of 50% indicates an equal amount of long and short liquidations. If it’s below 50%, it means more short sales have been liquidated.

Any metric above 50% indicates the dominance of long-term liquidation, as most of the charts do. According to the chart, long liquidations dominate throughout the year, with the exception of short periods in February, April, July and November.

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