TL;DR
- Short investors lost $280 million in 24 hours due to a market rally, primarily driven by a surge in Bitcoin’s price. This led to a market liquidation of over $364 million worth of leveraged bets against Bitcoin.
- The rally, which saw Bitcoin prices increase by 10%, is backed by multiple catalysts such as rising volumes on spot bitcoin exchange-traded funds (ETF) and institutional buying. This has led to calls for a new bull market.
- The wider cryptocurrency market, including Solana’s SOL, Cardano’s ADA, and Stacks (STX), also benefited from the Bitcoin surge. Meanwhile, Ethereum hit a significant value peak of $3,273.
Short investors have lost a staggering $280 million in just 24 hours due to the latest market rally. This significant loss is primarily attributed to the recent surge in Bitcoin’s (BTC) price, which has shaken out leveraged bearish bets. Bitcoin’s price rally has led to the overall market liquidation of over $364 million worth of leveraged bets against the cryptocurrency in the past 24 hours.
Coinglass, a tool specializing in the analysis of on-chain data, has reported significant trading activity. It has been observed that traders have encountered liquidations amounting to $364 million across various platforms, including Binance, Bybit, OKX, and Huobi. A substantial part of these liquidations originated from Bitcoin short sellers.
As Bitcoin continues to perform strongly against these short positions, analysts are now turning their attention to identifying the upcoming crucial resistance levels. This information is crucial for forecasting upcoming market movements and making educated trading choices.
This rally, which saw prices increase by 10%, marks the biggest daily gain since October. The surge has spurred calls for a firm new bull market, with BTC briefly topping the $57,000 level early Tuesday. This rally is not an isolated event but is backed by multiple catalysts such as rising volumes on spot bitcoin exchange-traded funds (ETF) and institutional buying.
Short Investors Suffer Massive Losses as Bitcoin Surges 10%
The asset’s robust performance since the beginning of this week may be attributed to the covering of short positions. CoinGlass data reveals that short bets have incurred losses exceeding $180 million since Sunday. Despite this, open interest has surged from $48 billion to nearly $54 billion, indicating an increase in optimistic bets as traders anticipate volatility.
The wider cryptocurrency market has also benefited from the surge in Bitcoin. In the last 24 hours, Solana’s SOL and Cardano’s ADA have both seen an 8% increase, while Stacks (STX), a layer-2 token of Bitcoin, has experienced a spike of over 25%. Market analysts suggest that Bitcoin is solidly in a “new bull market” and could witness substantial gains as the expected halving event draws near.
Ethereum recently saw a significant increase in its value, with its price hitting $3,273. This peak is noteworthy as it hasn’t been reached since April of the preceding year, and it’s a considerable deviation from its record high in November 2021.
In related news, the Bitcoin Fear and Greed Index, which gauges the market sentiment for cryptocurrencies, reached a one-year high of 79. This is a level that hasn’t been seen since Bitcoin achieved its highest-ever price, close to $69,000, in November 2021. This data suggests a shift in market sentiment towards cryptocurrencies.
