The cryptocurrency market experienced a modest recovery on Tuesday, with nearly every token in the top 100 by market cap posting gains. This upward trend, however, led to substantial liquidations, totaling over $87 million in the past 24 hours. According to CoinGlass, $56 million of these liquidations were from short positions.
Bitcoin (BTC) rose by 2.45%, trading at $61,983, while Ethereum (ETH) increased by 1.88% to $3,403. Memecoins also performed notably well, with Pepe (PEPE) and Dogwifhat (WIF) seeing gains of 15.9% and 16.8%, respectively.
While the market gains are promising, they have caused difficulties for short position holders. Even those with long positions faced challenges, with approximately $30.9 million in long positions being liquidated. The cryptocurrency market had been on a downward trend for the past two weeks, with Bitcoin dipping as low as $59,780 the previous day. Contributing factors to this decline include the sell-off of seized Bitcoin by Germany and the expected movements of Bitcoin held by the defunct crypto exchange Mt. Gox.
Bitcoin and Ethereum have been particularly affected by recent liquidations, which surpassed $360 million on June 24 when Bitcoin fell below $60,000 for the first time since early May. Amid these market dynamics, analysts are keeping a close eye on “accumulation whales,” large investors who might be leveraging the lower prices to accumulate more assets.
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