Shorts Still in Play | Market Makers Favor Liquidating Longs
Edited By
Liam O'Sullivan
In an interesting turn of events, shorts in the crypto market have yet to be liquidated despite soaring positions since early October 2025. Observers have noticed that while short positions now total $14 billion on Bitcoin’s liquidation map, longs continue to face liquidation pressure.
Analyzing the Liquidation Map
Cryptocurrency traders have been keenly evaluating liquidity levels, particularly on platforms like CoinGlass. Since October began, a significant number of short positions piled in as traders saw profits, while long positions faced continuous challenges. Market makers appear more inclined to liquidate long holders, raising questions about why the shorts remain unscathed.
"It seems like market makers would much prefer to liquidate longs over shorts," one user remarked.
Market Sentiment: Bullish or Bearish?
The current sentiment reveals skepticism among traders regarding market manipulation and the prevailing downward price momentum. Discussions highlight three key themes:
Momentum Plays: Some traders believe that ongoing selling pressure from miners and big players favors liquidating long positions rather than reversing to squeeze shorts.
Market Dynamics: Multiple voices spotlight how the sheer volume required to move a $2 trillion asset like Bitcoin complicates any narrative of simple market manipulation.
Hedging Strategies: At least a portion of shorts appear to be part of delta-neutral hedging strategies, which means they are not likely to be closed out in panic.
"If you're hedging, there's no need to panic close just because of potential losses," noted a participant discussing their positions.
Curious Market Movements
Interestingly, the market’s behavior raises the question: What factors determine which positions market makers choose to target for liquidation? Many traders express a desire to see a market rally that could catch short sellers by surprise. One comment suggested the market should rise to $150,000 to trigger a massive short squeeze, though such speculation remains optimistic at best.
Key Insights
◉ $14 billion: Shorts in play on the BTC liquidation map.
▽ Market makers continue to target liquidating longs amid persistent downward pressure.
🔄 "The house always wins" - a sentiment among those tracking the market closely.
As the crypto market evolves, traders remain on edge, examining their positions and market trends closely. Will shorts finally face liquidation, or will the long positions continue to experience the brunt of market forces? Stay tuned as developments unfold.
The Road Ahead for Crypto Traders
As we look to the near future, there's a solid chance that shorts may eventually face liquidation as market conditions shift. Many analysts believe that the ongoing bearish sentiment could reach a tipping point, triggering a rally driven by a sudden influx of buying interest. This scenario seems probable given the $14 billion in short positions currently in play. Some experts estimate around a 60% likelihood that once market makers start targeting shorts, we could see Bitcoin hit key resistance levels, potentially leading to a significant price surge. Traders should prepare for this dynamic, keeping a close eye on market movements and sentiment shifts to gauge potential opportunities.
Historical Echoes in Unexpected Places
In the late 1990s, the tech bubble showcased a similar vibe where investors heavily favored certain assets, often overlooking looming market corrections. Just as crypto traders are now watching for how shorts may handle liquidation pressures or rallies, tech investors were caught in their own cycle of optimism and skepticism. Many were blindsided when a sudden downturn revealed how fragile market valuations had become. In both scenarios, the allure of quick gains led to hesitance in acknowledging foundational weaknesses, reminding us that while history may not repeat exactly, it often rhymes in surprising ways.