A seismic shift in the crypto market has left bears reeling, with over $800 million in short liquidations – the highest since 2023. Ethereum(ETH) led the charge, surging 20% and triggering a cascade of liquidations.
What's Behind the Rally?
The crypto market's bullish sentiment was fueled by a trade deal between the US and the UK. This development, combined with Ethereum's recent Pectra upgrade, has given traders a reason to bet on the asset.
Major Altcoins Join the Rally
- *$ETH Ether (ETH)*: Rose 20%, pushing past $2,000 for the first time since early March.
- *$DOGE DOGE*: Zoomed over 10%, fueled by bullish sentiment and momentum trading.
- *Cardano's $ADA *: Increased by more than 10%, joining the broader crypto rally.
- *Solana's $SOL, $BNB, and $XRP*: Rose at least 7%, as the crypto market's bullish sentiment gained traction.
Liquidations: A Market Extreme?
Liquidations occur when an exchange forcibly closes a trader's leveraged position due to insufficient margin. Large-scale liquidations can indicate market extremes, such as panic selling or buying. In this case, the uptick in crypto markets came as Bitcoin surged above $100,000 on Thursday.
Data Insights
- Over 84% of the total liquidations came from shorts, according to CoinGlass data.
- Binance and OKX accounted for over $500 million in liquidations.
- ETH alone was responsible for over $310 million in liquidations, while Bitcoin-tracked futures led at $375 million.
Expert Analysis
Shaurya Malwa, Co-Leader of the CoinDesk tokens and data team in Asia, notes that Ethereum's recent Pectra upgrade may be giving traders a reason to bet on the asset. As the crypto market continues to evolve, it's essential to stay informed about the latest developments and trends.
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