Bitcoin Bounces Back Causing Massive Liquidation
Bitcoin's sharp rise stirs the market; massive liquidations follow, affecting predominantly short positions.
Following a period of downward trends, Bitcoin saw a significant rise of nearly $2,000 within the last day, marking its top value since June 8. Unsurprisingly, this led to millions in liquidations, predominantly short positions accounting for about 80%.
In light of recent SEC suits against crypto giants Binance and Coinbase, Wednesday's CPI data, and the Fed's shift from its rate-hiking stance, Bitcoin had previously displayed a disappointing performance. It had even registered a three-month low. Concurrently, altcoins faced even greater losses, dragging the total crypto market value down by $130 billion in less than a fortnight.
Yet, the bulls can now rejoice, as the last 24-48 hours brought a favorable shift to the market. Following BlackRock's submission for a Bitcoin Spot ETF, BTC regained traction and reached $25,500. Despite a minor setback, it surged to a 9-day peak at $26,800. As a result, most altcoins, including Solana, Polygon, Ethereum, Aptos, and Algorand, have followed or even surpassed BTC's daily gains, increasing by up to 9%. Notably, QNT, a larger-cap alt, saw a 20% increase.
This upward trend majorly impacted short traders.Liquidated positions amounted to over $90 million in 24 hours, with short traders contributing more than $70 million (around 80%). Bitcoin and Ethereum were responsible for a significant portion of these, nearly $50 million of the total $90 million, as per Coinglass.
