As the market cap increased by nearly $90 billion, the crypto market experienced a strong recovery over the past 24 hours. The total market cap was approximately $1.4 trillion on Monday.
The latest data released by crypto analytics firm bybt.com shows that the recent surge in crypto assets has accelerated liquidation of short trading positions across crypto market. Data shows that close to $218 million worth short positions were liquidated in a single day.
Bitcoin (BTC), which saw the liquidation in excess of $150 million of short positions, was about $153 million. Ethereum, which is the second-most valuable crypto asset in the world, remained the most popular digital currency. ETH’s value increased by nearly 10% over the past 24 hours. Nearly $50 million worth short Ethereum positions were liquidated in a single day due to the recent spike.
In total, over 57,000 crypto trading positions have been liquidated within the last 24 hours. With a value of almost $3.9 million, Bybit-BTC was the largest liquidation.
Crypto Market Correction
The crypto market has been experiencing a decline for six weeks. Since 12 May 2021, the total market cap for digital currencies has fallen by more than $1 trillion. Traders remain uncertain about future price movements despite the recent jump in crypto assets. JPMorgan’s latest research note states that the crypto market has been recovering, but overall the situation is not good. Peter Schiff, a US-based economist raised concerns about recent price movements of Bitcoin and other cryptocurrency.
“Most Bitcoin buyers who purchased the last dip below $30K won’t buy the next. These will be the main buyers, as they took profit on the bounce. The next dip won’t receive nearly as much support. In a tweet, Schiff stated that new buyers are likely to show up at $20K but less than at $30K.