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Bitcoin extends rally as short liquidations surge to most since July 2021

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Bitcoin (BTC-US Dollar) continued to rise in Wednesday afternoon trading for the second time in a row, the most seen in 15 months as the cryptocurrency experienced short-term liquidations of $1.2 billion in the past 24 hours.

of The world’s largest digital token by market capitalization (BTC-US Dollar) climbed 5.2% It climbed to $20.84k at 12:37pm ET, but remains range bound through mid-June. Ethereum (ETH-US Dollar) has jumped to its highest value since blockchain transitioned to a Proof-of-Stake consensus mechanism in mid-September. 8.9% to $1.55K.

Overall, the global cryptocurrency market capitalization has exceeded $1 trillion. 5.4% Last Day’s Increase After Nearly Three Months Below That Threshold, According To CoinMarketCap data.

The continued upward pressure within the cryptosphere is likely due to massive liquidations in short trades, or betting on price declines, which may have spurred short-term pressure on token prices. It should be noted that if an exchange closes a trader’s leveraged position, the trader does not have sufficient funds to meet the margin requirements to continue a losing trade, thus liquidation is effective. will be

Staring data From Coinalyze, Sam Bankman-Fried’s cryptocurrency exchange FTX hits record $1.02 billion as of writing, making it the fastest liquidation ever. This was followed by Binance at $55.1 million, OKX at $43.2 million and Bybit at $36.6 million.

These moves may indicate that cryptocurrency prices have bottomed out, but the Dow Jones (DJI) +0.8%the S&P 500 (SP500) +0.4%and the Nasdaq (COMP.IND) -0.4%Broadly speaking, equities and cryptocurrencies have shared a strong relationship over the past year, with the latter seen as a measure of risk tolerance and overall risk sentiment.

The bullish price action in cryptocurrencies (and equities) is also due to market participants continuing to believe the Federal Reserve is about to pivot toward a less hawkish monetary tightening. . However, inflation is still at its highest level in 40 years, so nothing is certain about that.

Crypto-related stocks have changed hands, mostly green: Riot Blockchain (Riot) +7.3%CleanSpark (CLSK) +10.4%MicroStrategy (MSTR) +7.4%coinbase global (coin) +3.4% and Marathon Digital (Mara) +1.5%.

Seeking Alpha by Joe Albano Bitcoin technical analysis.

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