Bitcoin and Ether Rally Triggers $1 Billion in Crypto Short Liquidations
The cryptocurrency market witnessed a sharp rally, leading to the liquidation of over $1 billion in short positions within 24 hours. This event impacted 232,149 traders, with Bitcoin and Ether accounting for the majority of liquidations. Bitcoin’s price reached consecutive all-time highs, peaking at $112,000 on Wednesday and $116,500 on Thursday. Ether also saw significant gains, climbing to $2,990 on Thursday.
Market Reactions and Expert Analysis
Crypto analyst Miles Deutscher described the market’s turnaround as ‘Bears in disbelief.’ Daan Crypto Trades characterized the event as a ‘MASSIVE Short squeeze on BTC & ETH.’ The Crypto Fear & Greed Index remained at a ‘Greed’ score of 71, slightly down from the previous week’s 73.
Differing Perspectives on Market Direction
Prior to the rally, analysts offered contrasting views. Bitfinex analysts pointed to a ‘lack of follow-through strength’ among traders. Conversely, Michael van de Poppe of MN Trading Capital forecasted an ‘inevitable breakout to an ATH on Bitcoin.’ The market’s volatility was further highlighted by the $2.11 billion in long positions at risk if Bitcoin’s price retreated to $112,000.
