• Crypto liquidation has topped $264 million in the last 24 hours, with Bitcoin and Ethereum leading an unexpected market rebound.
• The current U.S. election cycle is driving rare optimism in the crypto market, with many betting on a pro-crypto president winning.
• Major altcoins like Solana are rallying alongside Bitcoin and Ethereum, contributing to the liquidation trend.
The crypto markets saw intense volatility over the last 24 hours, resulting in massive liquidations across derivatives exchanges. Over $224 million worth of short positions were liquidated, catching many traders off guard.
Bitcoin Leads the Charge
Bitcoin led the liquidation frenzy, with over $79 million worth of BTC positions liquidated on derivatives exchanges in the last 24 hours. The majority of the liquidations came from short traders, totaling $73.8 million as Bitcoin broke out above $72,000.
Meanwhile, Ethereum saw $352 million worth of ETH liquidated, with short traders taking the brunt of the damage at $281.7 million.
Driving Factors Behind the Bitcoin and Ethereum Surge
Several key factors are driving the upside in Bitcoin and Ethereum prices.
First, optimism is growing around the upcoming U.S. presidential election. Many believe a crypto-friendly administration could take office, boosting the outlook for Bitcoin regulation.
Additionally, Bitcoin open interest and spot ETF inflows have been steadily rising, signaling growing institutional demand.
For Ethereum, excitement is building around upcoming network upgrades like “The Merge” which will transition Ethereum to a proof-of-stake consensus model. These changes promise to significantly improve Ethereum’s scalability and efficiency.
The Takeaway
While liquidations are common in crypto’s volatile markets, the past day’s carnage serves as an important reminder to use proper risk management. With Bitcoin and Ethereum fundamentals improving, the bull run may just be getting started.
