The cryptocurrency market attracted attention with a significant increase in value in the last 24 hours. While major crypto assets such as Bitcoin, Ethereum, Dogecoin and Lido Staked Ether experienced significant increases, investors, especially those with short positions, faced high amounts of liquidation.
Market Recovering: Rapid Rise in Bitcoin and Altcoins
The total value of the market grew by 4.29 percent in one day, bringing a rise in many major coins. Dogecoin gained 9.1 percent, Lido Staked Ether gained 8.83 percent, and Ethereum gained 8.75 percent. With the rise in the price of Ethereum, it exceeded the $ 2,000 level again. Bitcoin also increased by 4.76 percent during the same period, briefly hitting $70,027 and then trading at $68,647.
Historical Liquidations in Short Positions
Investors’ short positions, which could not keep up with the upward price movement, faced huge losses in the last 24 hours. According to Coinglass data, the total liquidation amount reached 575.59 million dollars, while 468.53 million dollars of this was due to short positions. While a short position of approximately $194.95 million was closed in Bitcoin alone, this figure was $175.16 million in Ethereum.
In addition, the largest single liquidation order was $10.41 million for the BTC-USD trading pair on the Hyperliquid platform.
Investors with long positions benefited the most from the rise. However, participants who expected a decline in the market suffered serious losses and a total of 128,348 traders were liquidated.
Market Movements and Expert Evaluations
The recent rise has created short-term optimism throughout the market. However, experts point out that the current momentum does not indicate a major trend reversal. Japan-based XWIN Research, which analyzes crypto data, stated that the amount of open interest has recently decreased significantly from previous peaks and the market has generally reduced leverage.
“The recent price decline was accompanied by a decrease in open positions. This indicates that the closing of positions in the derivatives market has come to the fore instead of aggressive spot sales. Although such a reset could help stabilize the market, it does not imply a permanent increase in structural demand,” XWIN Research Japan said in its assessment.
The Fund Flow Ratio metric on the Binance exchange remained at a low level, indicating that there was no sudden selling pressure on the spot side during this period. The moving averages of the same data maintain their downward trend in the medium term, showing that there is no strong return in demand.
“When leverage is suppressed, upward price movements can easily lead to liquidations in short positions. The rallies seen in this case are generally due to position closings, not a permanent increase in demand,” the evaluation was shared.
Analyst Darkfost emphasized the need for a strong increase in spot volume for a permanent rise or a solid market base.
