Speculators who bet against Bitcoin and other cryptocurrencies are feeling the sting as the market experiences a significant surge. Over the past 12 hours, the crypto market has gained more than 5%, resulting in a massive wave of liquidations for short positions. This upward movement has injected $65 billion back into the crypto space and dealt a blow of around $155 million to bearish traders.
Market Rejuvenation After a Period of Languishing:
In a remarkable daily shift, the crypto market has witnessed a 5.2% increase over the past 24 hours. Total capitalization, which had slumped to an intraday low of $1.10 trillion, has now rebounded to $1.17 trillion. This recovery erases all the losses incurred during the recent downturn prompted by SEC-related concerns on June 14. However, despite this resurgence, the overall market outlook still indicates a phase of consolidation and sideways movement.
Liquidations Pile On, Mostly Affecting Short Positions:
Coinglass, a leading crypto data provider, reports total liquidations amounting to $155 million within the past 24 hours. Significantly, approximately 80% of these liquidations were associated with short positions. Among the hardest hit by these liquidations are Aragon (ANT) traders, experiencing a staggering 13% surge in liquidations amid today’s market upswing.
Institutional Factors Fueling the Market Rebound:
The recent market surge coincides with the submission of applications for Bitcoin spot Exchange-Traded Funds (ETFs) by prominent financial institutions such as BlackRock and WisdomTree. Additionally, industry giants like Fidelity, Schwab, and Citadel are poised to launch their own cryptocurrency exchanges. These developments have raised speculation about a possible coordinated effort in the wake of the SEC’s scrutiny of Coinbase and Binance.
CryptoQuant CEO Ki Young Ju commented on the market movement, stating, “This is not a short squeeze, but someone(s) is just buying BTC a lot.” The observation highlights a notable influx of significant Bitcoin purchases driving the recent surge.
Bitcoin Leads the Market Charge:
Bitcoin, the leading cryptocurrency, has spearheaded the market’s upward trajectory, soaring by 6.6% in the past 12 hours. During the Wednesday morning Asian trading session, the asset reached a peak just below $29,000 before slightly retracing to $28,698 at the time of writing. Despite the recent “hangover period,” Bitcoin has exhibited an impressive 10.6% gain over the past week, with a substantial portion of this increase occurring during the latest surge.
Altcoins Show Positive Momentum:
Alongside Bitcoin, Ethereum has also performed well, securing a 4.8% gain to reach $1,811 at the time of writing. Several altcoins have also experienced positive momentum, including Cardano (ADA), Polygon (MATIC), Litecoin (LTC), and Avalanche (AVAX). Nevertheless, despite these gains, most altcoins still have a considerable way to climb to reach their peak prices from the previous bull market.
The crypto market has rebounded strongly, leaving short-selling speculators nursing losses. With a significant influx of capital and a surge in Bitcoin and altcoin prices, the market has defied recent concerns and showcased its resilience. As institutional interest in cryptocurrencies grows, the market landscape continues to evolve, presenting opportunities and challenges for investors and traders alike.