Cryptocurrency market growth surge wipes $800M in shorts as traders bet on altcoins and bullish macro trends - IcoHolder.
The cryptocurrency market is experiencing a robust recovery, with altcoins spearheading a dramatic rally that has wiped out over $800 million in short positions. Traders are brushing aside recession fears, buoyed by growing optimism surrounding a potential U.S.-UK trade deal and an uptick in institutional activity that has revived market momentum.
Bitcoin, which remains near the critical $100,000 mark, continues to show signs of resilience, but it is the altcoins that have taken the spotlight. These digital assets have posted double-digit gains, triggering a wave of liquidations reminiscent of 2023, as prices surge and catch many traders off guard.
Several factors are driving this recovery. U.S.-listed spot Bitcoin ETFs have seen record inflows, reaching a cumulative $40.62 billion, signaling strong institutional interest. Additionally, Arizona’s recent passage of a Bitcoin reserve bill has added momentum to the pro-crypto regulatory environment, further bolstering investor confidence. The news of a potential U.S.-UK trade deal and easing global trade tensions has also contributed to a more favorable macroeconomic landscape, spurring risk-on sentiment across financial markets.
Ethereum, one of the standout performers in this rally, surged 20%, reclaiming the $2,000 mark for the first time since March. This spike was driven largely by growing institutional interest and excitement surrounding the Ethereum Pectra upgrade. The price movement prompted more than $310 million in liquidations from short positions tied to ETH, showcasing the volatile nature of the market.
The altcoin rally extended beyond Ethereum, with Dogecoin, Cardano, and Solana all posting gains of over 10%. XRP and Binance Coin also joined the surge, with each experiencing at least a 7% increase. These rapid movements have left bearish traders blindsided, contributing to one of the largest liquidation events in recent months.
Data from Coinalyze revealed that more than 84% of liquidations on Thursday were tied to short positions, marking a harsh day for bearish traders. This $800 million wave of liquidations is the largest seen since April, underscoring the current bullish momentum that has taken hold of the market.
As the market continues to show signs of a strong risk appetite, traders remain vigilant amid lingering macroeconomic uncertainties. However, with bulls seemingly back in control, the next phase of this crypto recovery could see even more explosive gains—particularly if Bitcoin surpasses the $100K threshold, signaling the possibility of further bullish activity.
