Crypto Market Sees $601M Liquidations, Short Squeeze Drives Bullish Sentiment

The crypto market experienced a significant event today, with over $601 million in forced liquidations occurring within the past 24 hours. This wave of liquidations primarily affected short traders, with more than 138,000 traders impacted. The largest single liquidation involved $4.3 million of the ETH/USDT pair on the Binance exchange.

This surge in liquidations is expected to continue, potentially reaching and surpassing $1 billion as Asian markets open. The heightened speculative trading and rising open interest (OI) are contributing factors to this trend. The recent parabolic rally in gold prices has also fueled a return of intense speculation in the crypto market.

The heavy liquidations of short traders have sparked a short squeeze, driving bullish sentiment and renewed interest from whale investors. As more short traders shift to a bullish stance to capitalize on the rising trend, the impact of the short squeeze is expected to be felt in the coming days.

Bitcoin's price has broken out of a multi-week falling logarithmic trend and is poised to rally toward a new all-time high. The broader altcoin market is also following Ethereum's price in a bullish trajectory. With the crypto-leveraged trading market cooling down and an improved regulatory outlook in the United States, along with anticipated diplomatic solutions to the ongoing global trade war, the bullish sentiment is likely to persist.