Bitcoin and Ethereum took the lead in the world of cryptocurrencies as over 54,000 traders experienced liquidations, resulting in the total market cap reaching close to $2.1 trillion. In just 24 hours, the crypto market saw over $145 million being liquidated across exchanges, with a majority of trades, amounting to $91 million, being registered as short positions. Interestingly, despite these liquidations, the total cryptocurrency market cap increased by 1.2% and invalidated the downside bets.
During this liquidation day, the largest order was a $4 million Bitcoin position in a USDT pairing on Binance, which is known as the largest cryptocurrency exchange. Traders collectively lost at least $70 million in both Bitcoin and Ethereum, due to both long and short bets.
However, amidst these liquidations, Bitcoin and Ethereum have shown upward momentum. Over the past week, Bitcoin has gained 3% and Ethereum has gained 11%, reflecting a bullish sentiment in the market. Bitcoin’s recent rally can be attributed to the approval of Bitcoin ETFs by the U.S. SEC on January 10, as well as the anticipation surrounding the upcoming Bitcoin halving in April, which is expected to trigger a parabolic run for the cryptocurrency.
On the other hand, Ethereum’s current momentum is focused on the technological upgrade known as Dencun. This upgrade aims to enhance data availability for layer-2 rollups, reducing transaction costs and improving scalability. Successful testing on three testnets has paved the way for the shipment of Dencun to Ethereum’s mainnet in mid-March.
Overall, despite the liquidations and market volatility, Bitcoin and Ethereum continue to hold strong positions and show promising growth in the cryptocurrency market.