Traders are now shorting altcoins in large quantities, trying to profit from the overall bear market as prices of cryptocurrencies continue to plunge, according to a recent analysis by Santiment Insights.
What Happened: This essentially means there are more traders betting on price drops than those who are betting on the price rise. Bitcoin BTC/USD, the apex cryptocurrency continues to hover around the $19,000 mark, while altcoins like Ethereum ETH/USD dropped by 3.75% in the last seven days, Ripple XRP/USD by 10.70% and Cardano ADA/USD plunged 12.16%, as per CoinMarketCap.
See More: BEST ALTCOINS IN 2022
The number of short positions is way higher than long-term trades in altcoins. "Historically, when funding rates show significant shorts, liquidations are more common and surprise bounces can occur,” Santiment tweeted.
Price Action: At the time of writing, Ripple's price stands at $0.447, down 2.09% in the last 24 hours, while Cardano fell 3.5% to $0.34, according to CoinMarketCap.
Read Next: As Bitcoin, Ethereum Trade Muted, DeFi Tokens Steal Spotlight — One Crypto Rallies 10%
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Visit Benzinga’s Crypto Homepage – 1,000,000+ depend on Benzinga Crypto every month