The cryptocurrency market looks to have redeemed losses from less than 24 hours ago with over $100 billion inflows, following the Bitcoin price trend, which rose back above $40,000.
Bitcoin is back on track after falling below the psychological price of $40K over the weekend. Bitcoin (BTC) rose from $38,200 to $40,754 on Bitstamp on April 26, a four-day high, according to TradingView.
The flagship cryptocurrency started rallying around 12 p.m. (UTC) on Monday, erasing the intraday loss completely, which was a welcome change from the gloomy atmosphere over the weekend.
The sell-off was accompanied by fear, and the market eventually became oversold, resulting in a reversal that saw over $100 billion flow into the crypto market cap, which increased from $1.73 trillion to a peak of $1.846 trillion in less than 24 hours, representing a total of $116 billion, according to TradingView data.
The vast majority of other big cryptocurrencies are also performing strongly. Solana (SOL), Polkadot (DOT), Terra (LUNA), and Avalanche (AVAX) have all climbed 5%, 4%, 10%, and 5% respectively, in the last 24 hours.
Speculators betting on the price of Bitcoin and other cryptocurrencies plummeting in recent hours triggered a wave of large short order liquidations, with nearly 82 percent of shorts liquidating on exchanges, according to Coinglass statistics.
The liquidation clusters of shorts resulted in 38,509 traders liquidating across the cryptosphere in less than 24 hours, bringing the total value liquidated to around $194.25 million.
The market’s turnaround can be linked to relief in the global equity market following news that Tesla and SpaceX CEO Elon Musk is on the verge of taking over social media giant Twitter.
Elon Musk has become a household name among those with even a casual interest in cryptocurrency. The billionaire who is attempting to ferry people to Mars has been shaking up the crypto industry with his witty tweets.
He’s a well-known blockchain aficionado, and crypto traders reacted positively to his takeover. He is also known as the most prominent Dogecoin fan. The meme token rose nearly 40% from its intraday low. Twitter (TWTR) futures also saw a 6.48 percent spike in trading.