CryptoBitcoinBitcoin and Ethereum Lead Cryptocurrency Market Rally Amid Liquidations

Bitcoin and Ethereum Lead Cryptocurrency Market Rally Amid Liquidations

In a dynamic week for the cryptocurrency market, Bitcoin (BTC) and Ethereum (ETH) emerged as frontrunners in a rally that saw over 54,000 traders witnessing liquidations, resulting in a total market cap nearing $2.1 trillion.

CoinGlass reported liquidations exceeding $145 million across exchanges in a 24-hour period, with a significant portion, $91 million, attributed to traders anticipating lower prices through short positions. Despite these downside bets, the overall cryptocurrency market cap experienced a 1.2% increase, nullifying the impact of the liquidations.

The largest single liquidation order, amounting to $4 million, involved a Bitcoin (BTC) position in a USDT pairing on Binance, the leading cryptocurrency exchange.

Traders collectively faced losses of at least $70 million across both long and short positions in Bitcoin and Ethereum.

Bitcoin and Ethereum have witnessed upward trends in the past week, with BTC gaining 3% and ETH surging by 11% amid bullish market sentiment. Bitcoin’s rally is notably influenced by the approval of Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on January 10. Bitcoin’s current price stands at $51,800, and its market cap has surpassed $1 trillion, making it the 10th largest asset globally. Additionally, anticipation surrounds the upcoming Bitcoin halving expected in April, with expectations of triggering a supply crunch and increased demand, potentially leading to a parabolic run for the largest cryptocurrency.

Ethereum’s momentum is driven by a technological upgrade known as DenCun. This upgrade, scheduled to ship to Ethereum’s mainnet around mid-March, introduces expanded data availability for layer-2 rollups through a blob feature. DenCun aims to reduce transaction costs and enhance scalability by allowing layer-2 solutions to add more data to each block. Successful testing has been conducted on three testnets: Goerli, Sepolia, and Holesky.

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Andrew
Andrew
Self-taught investor with over 5 years of financial trading experience Author of numerous articles for hedge funds with over $5 billion in cumulative AUM and Worked with several global financial institutions. After finding success using his financial acumen to build an investment portfolio, Andrew began writing and editing articles about the cryptocurrency space for sites such as chaincryptocoins.com, ensuring readers were kept up to date on hot topics such as Bitcoin and The latest news on digital currencies and Ethereum.

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