The cryptocurrency market saw a significant surge in prices over the past 24 hours, causing over $500 million in losses for futures bets against higher crypto prices. This surge was driven by a possible cooling of China tariffs by the U.S., leading to the largest short liquidations since October.
Bitcoin (BTC) experienced a rise from $88,000 to over $93,500 in Asian trading hours, sparking a broader market rally. Other cryptocurrencies such as ether (ETH), Cardano’s ADA, and dogecoin (DOGE) also saw gains of up to 14%. Solana’s SOL and XRP rose by 7%, while tokens in the top hundred by market cap all showed positive movement.
In addition, coins like Sui Network’s SUI, UniSwap’s UNI, and Near Protocol’s demonstrated strength with gains of up to 18%. Memecoin mog (MOG) skyrocketed by 30%, continuing its trend of following ETH’s movements closely.
Short liquidations totaling nearly $530 million occurred as leveraged bets were unwound across various exchanges. Bybit saw the highest amount of short liquidations at $234 million, followed by Binance at $100 million and Gate at nearly $70 million. The largest single liquidation order took place on Binance, involving an ETH futures position worth over $4.5 million.
Liquidations happen when a trader’s leveraged position is forcibly closed due to a loss of the initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position, resulting in the closure of the trade.
The uptick in the crypto market coincided with President Trump’s remarks about being “very nice” to China in trade talks and the potential reduction of tariffs if a deal is reached. This news has eased concerns about an escalating trade war and has provided a more positive outlook for traders.
Jeff Mei, COO at BTSE, commented on the situation, stating that the likelihood of rate cuts and a weakening U.S. dollar could contribute to bitcoin’s surge. If the U.S. dollar depreciates, there may be limited alternatives for investors, potentially leading to bitcoin becoming a major store of value.
Overall, the recent market movements highlight the volatile nature of the cryptocurrency space and the importance of closely monitoring global economic developments. Stay tuned for more updates on the evolving crypto landscape.