Cryptocurrency market is on the rise and liquidation is on the rise - why?

Cryptocurrency market is on the rise and liquidation is on the rise – why?

During October 25, the cryptocurrency market rallied, with Bitcoin (BTC) rising above the token threshold of $20,000 and Ether (ETH) exceeding the $1,500 cap. What are the reasons for this rise, and do we expect it to continue in this trend? Liquidations-enchainent-pourquoi/

Cryptocurrency market rises without warning

This hasn’t happened for several weeks: Bitcoin (BTC) is back above the token bar of $20,000, dragging the entire market with it is as impressive as it is surprising. Also, we can take joy in noticing a green crypto market this morning:

crypto market

The state of the cryptocurrency market on the morning of October 26

So, currently, Bitcoin is displaying a proud price at $20,250, But its progress is still less than that of Ether (ETH), the second eternal. In fact, over the past 24 hours, the price of BTC managed to notice an increase of about 5%, as ETH outperformed by jumping almost 14% In just over 8 hours.

ETH . price

ETH performance in the last 24 hours

At the time of this writing, ETH is above the $1500 threshold, which hasn’t happened to him since mid-September, after implementing his The Merge update. In fact, after the latter, which passed the Ethereum blockchain to Proof of Stake (PoS), ETH has long capped between $1,200 and $1,400.

Overall, almost all of the top 100 cryptocurrencies by market capitalization saw at least a small increase. Some stood out and saw a bigger increase in their prices, such as ADA (11%), SOL (10%), or even Stream (11.5%). ETH-linked cryptocurrencies, such as Lido’s stETH or Ethereum Classic (ETC), She was also naturally able to notice a significant increase.

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Why is the cryptocurrency market regaining confidence?

While Bitcoin seems to be decoupling from the financial market lately, it appears that – some – good news from traditional finance Instill confidence in cryptocurrency investors.

In fact, over the past 24 hours, Major stock indices were able to see a significant increase. The Dow Jones Industrial Average (DJI) was able to see an increase of 1.07%, the S&P500 (SPX) of 1.63% and finally the Nasdaq Composite (IXIC) of 2.25%.

Additionally, according to FactSet, 72% of S&P500 companies reported third-quarter earnings. Exceeding Wall Street Expectations. Thus, it seems that the indicators that were designed on the basis of the results of the largest companies managed to partially dampen investors.

However, the rise in rates of major central banks remains the main concern of the latter, and this along with the expectations towards the United States Federal Reserve (FED), who somehow tries to control the accelerating inflation.

According to some observers, the Fed may give up its weight by the end of the year so as not to completely stifle the US economy, especially with regard to the real estate market. The future is still impossible to predict, and We’ll have to wait until November 1 for the next Fed meeting In order to hope to see what is clearer.

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Explosion in the filter

As with every major market movement, some investors Trying to make a profit by betting on the rise or fall of the cryptocurrency. However, liquidations have literally exploded in the past 24 hours, Crossing the billion dollar threshold.

24 hour closing.  png

24 hour filter status

Unsurprisingly, the vast majority of traders affected by this wave of liquidation have attempted to do so shorts Some assets, in other words to bet on their downfall. The vast majority of liquidations involved BTC ($500 million) and Ethereum ($434.5 million).

As the chart below shows, the liquidation wave over the past 24 hours has significantly surpassed the previous wave of $305 million on September 9.

Filter date

Short (in red) and long (in green) liquidation history of BTC price (in yellow)

Overall, the cryptocurrency market made its first really noticeable move here in a long time, But it is still difficult to predict the futureMuch of the financial markets themselves are in complete fog.

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Sources: Coin360, Yahoo Finance, Coinglass

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