For about last week, major cryptocurrencies are rallying upwards resulting in pumping their relative market capitalization. This pump led the market cap of the global cryptocurrency market to reach over 998 billion USD, according to CoinMarketCap data, in the aspiration of hitting the 1 trillion USD mark. Within the uptrend in cryptocurrencies value in the market, short liquidations in a significant number also played a crucial role.
Several data aggregators show the amount liquidated in shorts or in the bets against the prices going higher worth 500 million USD. The liquidation took place on Friday and with the notable amount, its now the highest level since October last year.
Following the figure of amount liquidated recently shows that more than 70% traders had booked losses following the closing of leverage positions of exchanges. The closing could have taken place after the initial market of traders got either partially or completely gone.
According to Coinglass data, OKX saw overall short losses of worth 256 million USD, while the biggest crypto exchange 125 million and Huobi showed 42 million USD worth loss.
Since last week the majority of cryptocurrencies including the leading ones have seen their prices jump up to 20% on average.
Following the strong CPI figures, Bitcoin (BTC) increased by 22% to almost 21,000 USD, and is currently trading at 21,154 USD. Ethereum (ETH) increased by as much as nearly 1,600 USD, and solana increased by almost 70%, trading at 24 USD on Monday compared to just 9 USD in the final week of December.
The underlying networks of numerous important tokens witnessed positive fundamentals, thus the run wasn’t entirely crazy.
Strong transactional activity on Cardano and Solana may have led to recent increases in both networks’ native ADA and SOL token prices, respectively. A network upgrade for Polygon is scheduled for this week, which will result in a 22% increase in MATIC over the previous week. In other news, the upcoming Shanghai upgrade for ether has strengthened its fundamentals.
Nothing could be said from now given the market conditions how long the slight bull run could continue, however, the recent run at least pushed the major cryptocurrencies to break the psychological barriers of their respective resistance zone.
Source: https://www.thecoinrepublic.com/2023/01/17/crypto-market-sees-significant-surge-short-liquidations-reach-500-million-usd/