In a sharp market reversal, Bitcoin's price surged to $106,000, leading to widespread liquidations totaling $341.85 million over 24 hours, as reported by CoinGlass. This event affected 117,978 traders, with the largest single liquidation order valued at $18.96 million on the Hyperliquid exchange.
Bitcoin accounted for $115.98 million in liquidations, with short traders bearing the heaviest losses at $106.75 million, while long traders lost only $9.22 million. Many short sellers had anticipated a continued downtrend, but Bitcoin's recovery defied expectations, partly fueled by optimistic commentary from science author Shanaka Anslem Perera, who suggested the bull run isn't over. At the time of reporting, BTC traded at $105,922.92, up 3.93%.
Ethereum saw $92.01 million in liquidations, with short positions making up $76.02 million of that. Other cryptocurrencies, including Zcash (ZEC), Dogecoin (DOGE), and XRP, were also impacted, with ZEC experiencing $14.47 million in liquidations. The broader crypto market capitalization rose to $3.56 trillion, a 3.91% increase, supported by positive developments such as the US Senate passing a funding bill to end the government shutdown and the DTCC adding proposed spot XRP ETFs to its 'Active and Pre-Launch' list.
This liquidation wave, characterized as a 'short squeeze,' forced the closure of leveraged positions and highlighted the risks of over-leveraging during volatile periods. Analysts note that such events can reset market leverage, potentially leading to more stable conditions ahead.
UNI
SOL
AVAX
ADA
HUGS
MOBU
XRP
LINK
MUTM