Bitcoin and Ethereum led the cryptocurrency liquidations as over 54,000 traders witnessed leveraged positions being wiped out and the total market capitalization reached nearly $2.1 trillion.
CoinGlass reported that over $145 million was liquidated from the crypto market across all exchanges within 24 hours. With most traders expecting lower prices, $91 million of these trades were registered as short positions.
However, the total cryptocurrency market cap rose 1.2%, per CoinGecko, erasing bearish bets. A $4 million Bitcoin (BTC) position in a USDT pair represented the largest single liquidation order. The trade took place on Binance, the largest crypto exchange.
Traders also lost at least $70 million on long and short punts combined between BTC and Ethereum (ETH).
Top 10 Liquidated Cryptocurrencies on February 19th | Source: CoinGlass
Bitcoin and Ethereum are rising
BTC and ETH, the top cryptocurrencies by market capitalization, have seen an upward price trend over the past week. The tokens have gained 3% and 11%, respectively, in the last seven days due to bullish market sentiment.
The Bitcoin ETF approvals by the US Securities and Exchange Commission on January 10th appear to be a major driving force behind Bitcoin's rally as it is priced at $51,800 and has a market cap of over $1 trillion, giving BTC making it the tenth largest asset in the world. There is also anticipation for the Bitcoin halving, which is expected in April.
Some believe that the halving, which halves the rewards of new blocks, and BTC purchases for spot Bitcoin ETFs will trigger a supply squeeze while demand increases. The guiding hypothesis is that this will lead to a parabolic rise in the largest cryptocurrency asset.
The Bitcoin halving is scheduled to take place in April 2024. Here's what to expect👇
First, let's think about the previous halving:
âž– In 2020, after the last halving, the block reward fell to 6.25 BTC
➖ Bitcoin’s hash rate fell by 30% in two weeks.
➖ Bitcoins miner difficulty… pic.twitter.com/6hIsjAVPKK
– IntoTheBlock (@intotheblock) February 16, 2024
Ethereum’s current momentum revolves around a technological upgrade called Dencun. Developers have stated that the changes will introduce expanded data availability for Layer 2 rollups through a blob feature. This allows L2s to add more data to each block, reducing transaction costs and improving scalability.
After successful tests on three testnets: Goerli, Sepolia and Holesky, Dencun is scheduled to be delivered to the Ethereum mainnet around mid-March.
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