The cryptocurrency world kicked off the week on a high note, leaving behind a period of correction as Bitcoin soared near its record highs from 2021.
In an impressive rally during the early U.S. trading hours on Monday, Bitcoin breached the $69,000 mark for the first time in a fortnight, marking a more than 5% increase in the last 24 hours.
This upsurge wasn’t confined to Bitcoin alone; Ether saw a 4% rise in the same timeframe, while major layer 1 networks such as Solana and Avalanche experienced nearly a 10% jump.
A Broad-based Crypto Rally
This upward trend was not limited to a few cryptocurrencies.
The entire digital asset spectrum felt the bullish momentum, with all components of the broad-market CoinDesk 20 Index (CD20) basking in the green, pushing the index up by 4.5% for the day.
This rally has sparked a wave of optimism across the crypto landscape, suggesting a renewed investor confidence in digital currencies.
Impact on Leveraged Positions
The surge had a significant impact on leveraged derivatives positions across the crypto market, leading to $195 million in liquidations.
Notably, a considerable portion of these liquidations, amounting to $129 million, targeted short positions that were betting on a decline in prices.
Bitcoin-specific short liquidations tallied up to $53 million, albeit lower than the daily average observed in recent times.
This lower-than-average short liquidation volume indicates a cautious stance among traders, with fewer participants taking leveraged bets on a continued downturn.
This shift could signal a changing tide in market sentiment, with the latest rally potentially setting the stage for further gains in the crypto market.
