Short squeeze hits top 500 cryptos as traders unwind bearish bets

Crypto markets saw the largest short squeeze since October as short positions were liquidated and Bitcoin outperformed the US dollar amid geopolitical uncertainty.

Cryptocurrency markets staged their largest short squeeze since the sharp selloff in early October, as a rebound in prices forced bearish traders to unwind positions and fueled hopes of a broader recovery.

Short liquidations across crypto futures and perpetual contracts climbed to about $200 million on Wednesday, the highest level since roughly $1 billion in short positions were wiped out during the October market crash, according to data shared by analytics firm Glassnode. The firm said it was the biggest short liquidation event across the 500 largest cryptocurrencies since the Oct. 10 selloff.

The rebound follows a significant recovery in investor sentiment, which flipped from fear to greed for the first time since early October, Cointelegraph reported earlier on Thursday.

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