The crypto market saw a strong recovery in the last 24 hours as the overall market cap added nearly $90 billion. On Monday, the total market cap touched approximately $1.4 trillion.
According to the latest data published by crypto analytics firm bybt.com, the latest surge in crypto assets has accelerated the liquidation of short trading positions across the crypto market. The data shows that nearly $218 million worth of short positions got liquidated within a single day.
Bitcoin (BTC) saw the liquidation of approximately $150 million worth of short positions. Ethereum, the world’s second most valuable crypto asset, remained the best-performing digital currency among the top 5 after ETH saw a jump of nearly 10% in the last 24 hours. Due to the latest spike, nearly $50 million worth of short Ethereum positions got liquidated within a single day.
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Overall, more than 57,000 crypto trading positions got liquidated in the last 24 hours. The biggest liquidation happened on Bybit-BTC, with a total value of nearly $3.9 million.
Crypto Market Correction
For the last six weeks, the crypto market has been in a downtrend. The overall market cap of digital currencies has lost more than $1 trillion since 12 May 2021. Despite the latest jump in different crypto assets, traders remain uncertain about the future price action. According to the latest research note published by JPMorgan, the crypto market is healing but the overall situation is not looking healthy. Peter Schiff, the US-based economist, also raised his concerns about the recent price action of Bitcoin and other cryptocurrencies.
“Most of the Bitcoin buyers who bought the last dip below $30K will not buy the next. The main buyers will be those who took profits on the bounce. Therefore, the next dip will not enjoy nearly as much support. New buyers will likely show up at $20K, but fewer than did at $30K,” Schiff said in a recent tweet.