Selim Kolkata | Anadolu Agency | Getty Images
The cryptocurrency rallied on Wednesday, recouping much of its losses from the previous day's selloff, which came just after Bitcoin hit an all-time high.
Bitcoin rose 7.2% to $66,801.38, while Ether surged more than 12% to $3,793.99, its highest since January 2022, according to Coin Metrics.
On Tuesday, Bitcoin hit a new intraday record of $69,210 for the first time since November 2021. The stock has been on the rise for weeks, and over the past month he is up 55%, but it has fallen just after hitting new highs.
See chart…
Bitcoin rebounds from Tuesday's selloff
“Yesterday seemed like a bullish sharp correction to me, which often happens when you hit multi-year highs,” said David Wells, CEO of Enclave Markets. ” he said.
“There will probably be a second test of the high, but if we can break through that, it could be an interesting development given the size of the options position,” he added. “These crashes include sharp corrections that appear to be associated with leveraged long momentum positions rising at key levels and then falling again.”
As of Wednesday morning, $100 million in short-term liquidations and $236 million in long-term liquidations had occurred across centralized exchanges in the past 24 hours, according to Coinglass.
When traders use leverage to short Bitcoin and the price of the cryptocurrency rises, they buy back Bitcoin from the market to close out their positions, causing the price to rise and more positions to be liquidated. Masu. In contrast, traders who are betting on rising prices will need to sell assets to cover their losses.
Other cryptocurrencies rebounded along with Bitcoin and Ether. Binance soared nearly 11%, while Solana rose 7%. The biggest gainers were memecoins, with Dogecoin up 18% and Shiba Inu coin up 23%.
Cryptocurrency-related stocks also rose. Coinbase and Microstrategy rose 5% and 8%, respectively. Marathon Digital rose nearly 6% and Riot Platforms rose 5.5%.
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