- Massive recovery hits crypto markets after multiple experts agreed last week that the bottom has formed.
- Bitcoin which was struggling to cross $70k, finally saw a massive 20% push in the last 48 hours, Ethereum too crossed its $2000 hurdle and trades around $2400 at press time.
- The massive recovery can be attributed to short covering, where $4 billion of shorts were liquidated in the last 48 hours.
Massive Recovery in Crypto Markets
Crypto markets have seen a massive recovery in the last two days as billions in shorts were liquidated, taking Bitcoin and major cryptocurrencies above their critical resistance levels. Bitcoin crossed $75,000, Ethereum crossed $2400, and Solana went above $90 within the last couple of days.
Here are the top 10 cryptocurrencies and their price levels at press time.
The market recovery can be attributed to more than $4 billion in shorts. Crypto market experts have been raising their voices that the markets have been in a bottom for quite a while with seriously undervalued Bitcoin and Ethereum prices. As the bottom effect brought in more buyers, a small growth in price led to a series of cascading liquidations.
Federal Reserve Open Market Operations Triggers Market Recovery
A major reason why retail investors could return to the markets was because of extensive open market operations undertaken by the US Federal Reserve. The Fed bought back billions of US Treasury bonds, injecting liquidity in the global economy. The effect of this injection can also be seen across gold prices.
Top Cryptocurrencies Decisively Cross Major Resistance Levels
Major cryptocurrencies that reached a bottom last week saw massive recoveries as markets turn bullish again.
- Bitcoin crossed $70,000 after struggling to cross these levels for almost 10 months.
- Ethereum crossed $2,000 and has been trading at $2400 at press time.
- Solana crossed $90 after more than 9 months.
- Dogecoin crossed $0.08, retaking its place back in the top 10 cryptocurrencies.
- XRP was the biggest to recover in the last 7 days with a 38% surge.
More than $4 Billion worth of Shorts were Liquidated
Crypto markets have witnessed massive recoveries, driven by investors buying at the bottom. At press time more than $4 billion were liquidated in the last 48 hours. The liquidations have driven market prices higher than their critical resistance levels, causing another wave of buying from retail and institutional investors.
Data from Coinglass shows different degrees of liquidations across different exchanges in crypto markets.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
