- The crypto market added $130 billion to its value in the last day.
- Bitcoin crossed $100,000 for the first time in two months.
- Ethereum soared 20%.
Crypto bears got steamrolled over the last 24 hours with $873 million worth of short positions liquidated.
That’s according to Coinglass, which noted the wipe-out as crypto prices ripped higher. Bitcoin crossed $100,000 on Thursday for the first time since February, while Ethereum leapt 20%.
The surge came after weeks of massive inflows in Bitcoin exchange-traded funds.
“Bitcoin crossing $100,000 signals a full-on narrative reset: that’s because this milestone cements Bitcoin’s role as a macro asset in institutional portfolios,” Mike Cahill, CEO of Douro Labs, a Pyth Network contributor, told DL News.
“The price action that’s happening right now is just catching up to what the smart money’s been preparing for all year,” Cahill said.
Bitcoin shorts made up most of the bloodbath, with $329 million worth of positions liquidated in the last 24 hours.
Ethereum’s 20% price leap following Wednesday’s Pectra upgrade also caught short traders flat-footed, vapourising $305 million in short positions.
Leading up to the rally, bearish sentiment had piled up, especially on perpetuals ― futures contracts without expiration dates.
XRP was the only exception to this trend among the major cryptocurrencies as bullish bets outnumbered bearish punts three-to-one.
Traders were especially bearish on Bitcoin as they stacked short positions with the price approaching $100,000. Market analysts even predicted a massive short squeeze in Bitcoin if the $3 billion cluster of short positions at the $100,000 mark were liquidated.
Bitcoin rocketed to $104,000 on Friday, but has since retraced below $103,000.
In total, the crypto market added more than $130 billion to its value in the last 24 hours.
Stability on the global trade front is easing investor concerns. This week, the US and the UK agreed on a trade deal that reduces taxes on some UK goods.
Dave Sedacca, head of finance at Parity Technologies, a blockchain infrastructure company, said market uncertainty is giving way to clarity.
Still, crypto’s volatility meant some traders with long positions were also caught out amid intraday swings.
Almost $300 million in long positions were wiped out in the last 24 hours ― the bulk of which happened on Ethereum.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. Got a tip? Please contact him at osato@dlnews.com.
