Bitcoin Cash futures traders lost the most in two years as prices spiked to $320.

According to data from Coinalyze, traders who were betting against bitcoin cash (BCH) suffered the highest losses in over two years when the price of BCH spiked to $320 last week.

Cumulatively, shorts and longs lost over $25 million on BCH-tracked futures, which may have contributed to the sudden price spike. Shorts are bets against an asset, while longs are bets on price increases.

As of Monday, funding rates have fallen into negative territory across all exchanges that offer BCH futures. Negative funding rates indicate that short traders are dominant and are willing to pay long traders to hold their positions.

BCH traders are paying fees as high as -0.05% every 8 hours to exchanges, which implies that short interest in the tokens is increasing.

Liquidation occurs when an exchange forcibly closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin. This happens when a trader is unable to meet the margin requirements for a leveraged position, meaning they don’t have enough funds to keep the trade open.

Significant liquidations can indicate the local top or bottom of a significant price movement, allowing traders to adjust their positions accordingly.

Last week’s movements likely occurred due to increased BCH trading volumes on South Korean exchanges, known for their irrational exuberance, as well as the launch of EDX Markets. EDX Markets is a new exchange backed by traditional finance heavyweights Fidelity Digital Assets, Charles Schwab, and Citadel Securities, which supports BCH along with bitcoin (BTC), ether (ETH), and litecoin (LTC).

Edited by Parikshit Mishra.

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