Crypto Liquidations Surge 156% to $573.19M as Bitcoin Rallies 8%

Crypto liquidations have surged to $573.19 million over the past 24 hours, driven by a sharp rally in the combined crypto market capitalization. This sudden market movement caught many traders off guard, resulting in 156,601 traders experiencing liquidations. The largest single liquidation order, valued at $4.47 million, occurred on the OKX exchange in a BTC-USDT-Swap contract.

Bitcoin (BTC) was at the center of this liquidation wave, with its price soaring from a daily low of $74,589.67 to a new high of $82,942.43, an increase of over 8%. This unexpected price surge led to significant liquidations, totaling $225.06 million for Bitcoin alone. Short traders were particularly affected, with $137 million in liquidations, compared to $87.77 million for long traders. This price movement also impacted other major cryptocurrencies, with Ethereum (ETH) and XRP experiencing liquidations of $161.71 million and $26.75 million, respectively. Short sellers in these markets also faced substantial losses, with $99 million for ETH and $17.29 million for XRP.

The recent price rallies in Bitcoin and altcoins were sparked by a shift in US trade policy. Initially, the market opened with a bearish outlook due to the ongoing US-China trade war. However, a 90-day pause on tariffs for 75 countries that have opened negotiation channels with the US triggered a rebound in Bitcoin prices. This policy change has raised questions about the sustainability of the current market conditions. Further escalation in the trade war could introduce new uncertainties, potentially offsetting the gains in risk assets.

Despite the recent liquidations, the resilience of Bitcoin's price, which has not dropped below $74,000 since April, has prompted renewed bullish projections from industry leaders. Bitcoin advocate Samson Mow described the recent price swing as a "mini-Godzilla candle," suggesting further price boosts ahead. These new growth forecasts align with Bitwise’s $1 million BTC price target, which is based on a "dip, then a rip" expectation. The ongoing market dynamics and policy shifts will continue to shape the outlook for cryptocurrencies in the coming days.