Bitcoin and Ethereum spearheaded the cryptocurrency market as it experienced a day of significant liquidations, with over 54,000 traders seeing leveraged positions wiped out, while the total market capitalization approached $2.1 trillion.
According to CoinGlass, liquidations totaling over $145 million occurred across exchanges within a 24-hour period. Notably, $91 million of these liquidations were attributed to traders holding short positions, reflecting prevailing expectations of lower prices in the market.
Despite the liquidations, the total cryptocurrency market capitalization rose by 1.2%, as reported by CoinGecko, effectively liquidating downside bets. The largest single liquidation order, worth $4 million, was recorded in a Bitcoin (BTC) position paired with USDT on Binance, one of the largest crypto exchanges.
Traders incurred losses totaling at least $70 million across both long and short positions in Bitcoin and Ethereum.
Bitcoin and Ethereum Experience Upsurge
Bitcoin (BTC) and Ethereum (ETH), the two dominant cryptocurrencies by market capitalization, witnessed positive price trends over the past week. BTC and ETH registered gains of 3% and 11%, respectively, amid a bullish market sentiment.
Bitcoin’s rally has been attributed to several factors, including recent approvals of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on January 10. Additionally, anticipation surrounding the upcoming Bitcoin halving in April has contributed to bullish sentiment. Some analysts believe that the halving, coupled with increased demand from spot Bitcoin ETF acquisitions, will lead to a supply crunch and trigger a parabolic run for Bitcoin.
Meanwhile, Ethereum’s upward momentum is centered around a forthcoming technological upgrade known as Dencun. This upgrade is expected to introduce enhanced data availability for layer-2 rollups through a feature called “blob.” By allowing layer-2 solutions to include more data in each block, transaction costs will be reduced, and scalability will be improved.
Dencun is scheduled to be implemented on Ethereum’s mainnet around mid-March following successful testing on three testnets: Goerli, Sepolia, and Holesky.
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