Key Takeaways:
- Ether surged by 20%, marking a significant crypto rally and resulting in over $750 million in short liquidations, the highest since 2023.
- Major altcoins like DOGE and Cardano’s ADA increased by more than 10%, with Solana’s SOL, BNB, and XRP rising at least 7%.
- This rally was supported by optimistic market sentiment and a trade agreement between the U.S. and the UK, with Binance and OKX contributing over $500 million in liquidations.
A broad crypto rally led by Ether’s 20% increase triggered liquidations exceeding $750 million in the last 24 hours, the largest amount for bearish trades since 2023. Data from CoinGlass indicates that more than 84% of these liquidations resulted from short trades. Altcoins experienced notable jumps of 10%–20%, emerging just hours after the surge began on Thursday evening.
The uptick in the crypto market followed Bitcoin’s rise past $100,000 the previous Thursday, buoyed by a trade deal between the U.S. and the UK. This comes at a time when major cryptocurrencies are showing increased volatility, and traders are responding by liquidating their positions to limit losses.
Liquidations occur when exchanges close a trader’s leveraged position to secure their capital when they cannot meet margin requirements. Such events often signal extremes in market sentiment, and the recent movements could suggest impending price reversals.
Overall, the bullish trend in the market highlights a renewed risk appetite, especially following the Pectra upgrade on Ethereum, which seems to have positively impacted trader confidence.
