Bitcoin’s value has increased by over 20% to hover around $25k in a span of just four days. This comes after its plunge of $19662 in the wake of Silicon Valley Bank’s failure and a declining dollar.
The dominant coin rose over 8% in the last 24 hours to trade at $24340 at press time.
Another noteworthy development was the return of 21,524 BTC to exchanges, the greatest amount since September 13, 2023. This, according to Santiment, indicated that traders are profit-taking while they can.
The U.S. government’s decision to intervene and stop the expanding banking contagion has improved the overall state of the cryptocurrency market significantly from last week.
Except for the top 200 stablecoins, which were sold en masse by traders re-entering the market, the altcoin market is a sea of green.
The rebound also brought other good news as BTC’s market cap of $467 billion came close to Meta’s market cap, of $469 billion.
Earlier TronWeekly reported that BTC had eclipsed Visa and Mastercard, two of the biggest competitors in the payment processing industry.
The king coin had an impressive debut in 2023 with an over 51% rally. In addition, its third “flippening” of Visa followed 14 days of price rises between January 4 and January 17.
Yet, on March 13, more than $100 million in Bitcoin shorts—bets against an increase in price—were settled. Since January 14, when a bitcoin rise led to a $500 million liquidation across numerous crypto futures, this was the largest sum that had been liquidated.
Bitcoin Sees Two-Month High Liquidations
According to information from Coinglass, the widespread liquidations resulted in losses for 78% of all bitcoin futures traders. The main cryptocurrency exchanges that suffered losses were Binance, OKX, Huobi, and Bybit.
When an exchange is compelled to close a trader’s leveraged position as a result of a partial or complete loss of the trader’s initial margin, this is known as liquidation.
It happens when a trader is unable to match the margin requirements for a leveraged position or does not have enough money to keep the transaction open.
The local peak or bottom of a sharp price move can be identified by large-scale liquidations, which may allow traders to adjust their positions.