Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The total market capitalization of digital currencies has grown over the past day, recording broad gains in major currencies, reflecting investor sentiment.
At the same time, this bullish resurgence is putting pressure on short positions, with more than $468.5 million of short positions being liquidated during the 24-hour window.
Cryptocurrency liquidation wave hits short sellers
According to data from BeInCrypto Markets, the total market capitalization increased by 4.29%. Most of the top 10 cryptocurrencies have made gains in the last 24 hours.
Dogecoin (DOGE) rose by 9.10%, achieving the strongest performance among the top 10 cryptocurrencies. This was followed by Lido Staked Ether (STETH) with an increase of 8.83%. Ethereum (ETH) is ranked third among the best performing currencies, registering an increase of 8.75% and regaining the $2,000 level.
Bitcoin (BTC) also made notable gains, rising by 4.76% in the past day. The leading cryptocurrency touched $70,027 on the Binance platform yesterday before falling slightly to $68,647 at press time.
BeInCrypto said the surge benefited some traders who bet on the upside and booked profits amid ETH’s recent rise, while traders who bet on the downside suffered more losses.
Coinglass explained that 128,348 traders were liquidated in the last 24 hours, with total liquidations reaching $575.59 million. Short traders took the lion’s share of losses at $468.53 million, compared to $107.06 million to liquidate long positions.
Bitcoin alone contributed almost 40% of total liquidations, with about $194.95 million liquidated in short positions. Ethereum recorded total liquidations of $203.8 million during the same period, with $175.16 million resulting from short trades.
The largest single liquidation order took place on the Hyperlicode platform for the BTC-USD pair, amounting to $10.41 million.
Analysts warn that the rise of the cryptocurrency market may not indicate a complete reversal in the trend
Recent reports have ignited optimism, but analysts warn that it may not It represents a complete reversal of the trend. According to xwin research japan, open interest has fallen sharply from previous highs, indicating a widespread deleveraging stage.
xwin research japan reported that the recent price decrease was accompanied by a decrease in open interest, suggesting that it was liquidations and liquidations of derivatives – not aggressive spot sales – that played the main role in the decrease. She said that this type of reset can contribute to market stability, but does not automatically indicate renewed structural demand. I wrote what you do.
Binance’s fund flow ratio remains low at around 0.012. Since this indicator tracks Bitcoin flows compared to total balances on exchanges, this low level indicates limited immediate selling pressure.
The analysis showed that during the decline towards the $60,000 range, the ratio did not see a significant increase. This suggests that there was no immediate panic selling.
However, Xwin Research Japan noted that weak flows do not mean strong aggregation. The average trend of the money flow ratio based on moving averages is downward. This indicates that structural demand has not yet turned upward.
When leverage levels remain low, upward price movements can easily lead to mass liquidations of short positions, the publication explained. In such a case, the increase is driven more by exits from positions, rather than by the expansion of structural demand.
Analyst Darkfoust also underlined On that Any bullish recovery or strong market bottom will require a raise In the spot trading volume.
