TLDR
- The crash in gold and silver triggers a rotation of capital toward underperforming assets like BTC.
- Short sellers lost $4.79 million in just one hour against the bulls.
- A single $5.23 million liquidation on Hyperliquid set the pace for the day.
A large-scale earthquake shook the safe-haven asset market in recent hours, but cryptocurrencies reacted unexpectedly. While precious metals and gold sank in massive sell-offs, Bitcoin liquidations signaled a significant shift in investor sentiment. In just 60 minutes, the forced liquidation ratio suffered a staggering 3,436% imbalance, with shorts losing at least $4.79 million.
This entire movement originates within a context where the traditional “safety trade” is showing deep cracks. Spot gold fell 3.1%, while silver and platinum plummeted 8.37% and 12.67%, respectively. Amid this scenario, traders initiated a capital rotation: as the year’s biggest winners fall, money seeks refuge in liquid vehicles that have not seen excessive returns.
Capital Rotation: Is it Recovery Time for BTC?
Despite the Bitcoin liquidations totaling $4.93 million during the period analyzed by CoinGlass, the market structure suggests a “catch-up” or recovery. While gold maintains a 64.9% increase year-to-date, Bitcoin has underperformed, dropping 6.5%. This divergence makes the pioneer crypto the obvious target for traders abandoning metals in search of value.
Over the last 24 hours, volatility has been extreme, affecting 95,012 traders with a total of $293.55 million in losses. However, the key data point is the forced buying pressure generated by the punishment of BTC “shorts.”
In summary, with long positions barely touched in the one-hour window (only $139,410 liquidated), the market appears to be positioning itself for a trend reversal. The imbalance in massive Bitcoin liquidations is not just a statistic, but a signal that institutional capital may be seeking in cryptocurrencies the security that gold, momentarily, has failed to provide.
