Ethereum and Litecoin Short Interest Drop-Off as the Crypto Market Rallies

0
67


It has been a tumultuous few months of trading for Ethereum (ETH) and Litecoin (LTC), with short positions rising to record highs as prices collapsed to year lows.

However, the recent week-long market rally, which saw XRP jump around 100% in a matter of days, has helped the bulls regain control of Ethereum and Litecoin, as the altcoins saw their short interest drop by 60% and 44%, respectively, in a matter of hours on Bitfinex.

This points to a short squeeze, where bears were likely forced to close their positions, adding further fuel to the bullish price action.

In the case of Litecoin, the timing of this short squeeze is interesting, as Charlie Lee, the coin’s creator, recently responded to bearish traders and major hedge funds that have been actively blasting the cryptocurrency’s current valuation and future outlook.

There is now roughly $28 million in ETH and $6 million in LTC being sold short on Bitfinex.

Bitfinex ETH/USD Short Interest via TradingView
Bitfinex LTC/USD Short Interest via TradingView

ETH and LTC are ranked 2 and 7, respectively in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.

More: Litecoin (LTC) Creator Fires Back at Bearish Traders and Hedge Funds

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.





Article Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here