Major cryptocurrencies experienced a significant rally on Tuesday evening, marking the first substantial surge since early April 2022. This surge was attributed to declining interest rates and growing anticipation for a spot Bitcoin exchange-traded fund (ETF) in the U.S.
Bitcoin (BTC) led the charge with a surge of almost 5% within the past 24 hours. Starting below $42,000, BTC reached a session high of $44,400 before settling around $43,800. This rally resulted in the liquidation of a significant amount of leveraged derivatives trading positions, mainly shorts betting on lower prices, totaling $162 million. Over 79,000 traders experienced liquidation, amounting to a total liquidation amount of $246.65 million. The largest single liquidation order occurred on OKX, with a BTC-USDT-SWAP value of $8.86 million. Additionally, over $92 million worth of shorts were eliminated in just one day in relation to BTC.
Other major cryptocurrencies also saw gains during this rally. Ethereum (ETH) increased by 2.94% and reached a price of $2,293, while Dogecoin (DOGE) surged by 5.95% and reached $0.095.
The global crypto market cap reached $1.60 trillion, indicating a 3.56% increase in the last 24 hours. This rally in the crypto market coincided with a dip in the U.S. 10-year Treasury yield below the significant 4.2% level, prompted by data indicating a slowdown in the labor market. As a result, stocks rebounded from session lows, with the Dow Jones Industrial Average declining by 0.22%, the S&P 500 seeing a marginal decrease of 0.06%, and the Nasdaq Composite outperforming with a gain of 0.31%.
Cryptocurrency analysts have shared their insights on the market. Michael Van de Poppe believes Ethereum has strong potential for a breakout above $2,150, with a potential target of $3,100 in the coming months. Eli Taranto, Executive Director at EQI Bank, noted the market rebound and the resurgence of DeFi, but cautioned about increased risk of profit-taking and the potential impact of U.S. labor market data on BTC’s price. Benjamin Cowen predicts a possible dip for Bitcoin if it reaches the $48,000 level based on Fibonacci retracement levels.
Data from LunarCrush reveals that Bitcoin’s social dominance has surpassed 35% in the last 24 hours, while Ethereum’s social dominance has risen by 33%. This metric accurately measures the “share of voice” across various social media platforms.
Overall, the recent rally in major cryptocurrencies has been fueled by declining interest rates and the growing anticipation for a spot Bitcoin ETF in the U.S. Investors are closely watching the market dynamics and the potential impact of various factors, such as labor market data and regulatory developments, on the future trajectory of cryptocurrencies.
