The market capitalization of all cryptocurrencies has surged beyond $1 trillion in a single day of notable gains for the industry with other cryptocurrencies following in Bitcoin’s footsteps.
Bitcoin soared on Monday morning, reaching $21,424 market on Bitstamp, according to TradingView, a 10 percent increase for the day as the most valuable cryptocurrency asset rises to make up for all of its losses from the previous week.
Ether, the native asset of the Ethereum network, saw gains too but underperformed the top cryptocurrency as the euphoric narrative around “The Merge” is decreasing as the event gets closer.
The majority of the cryptocurrency market’s unexpected rising prices caused a 4.8 percent pump to the global cryptocurrency market, pushing it to a week high of $1.01 trillion as the market struggles to reverse the downward trend.
Other major assets including Solana (SOL), Polkadot (DOT), Ripple (XRP), Cardano (ADA), Binance Coin (BNB), and Avalanche (AVAX) have all seen increases of 5%, 7%, 4%, 4%, and 8%, respectively, over the previous day.
The market surge has resulted in a sizable amount of liquidation due to traders’ failure to profit from their wagers expecting the price of Bitcoin and other cryptocurrencies to decrease over the course of the next 24 hours. Short order liquidations account for 78.56% of all liquidations, according to data from Coinglass.
93,274 traders from across the cryptosphere liquidated their long orders, bringing the total amount liquidated to about $368 million in the past 24 hours.
Due to panicky reactions to the Fed’s financial tightening to combat inflation, Terra LUNA’s bankruptcy, the decline of venture capital 3AC, and the liquidation of cryptocurrency lender Celsius, the market has been in a grumpy mood, especially in the last quarter of the year.
Although the month may have started off well, analysts continue to caution investors to stay away from high-volatility assets due to the Federal Reserve’s quantitative tightening and regulations, which are considered as a threat to the market.