The total market capitalization of all cryptocurrencies has soared past $1 trillion in a day of significant gains for the market as other cryptocurrencies follow in Bitcoin’s footsteps.
Bitcoin surged on Monday morning, reaching the $22,524 market on Bitstamp, according to TradingView, a 7 percent gain for the day as the leading cryptocurrency asset climbs to erase all of its losses from the past month.
Ether, the native asset of the Ethereum network performed even better than the number one cryptocurrency with a double-digit giga pump to surpass $1,500. The price pump has been driven by the bullish narrative that the network will soon switch from proof-of-work to proof-of-stake.
The unexpected price increases by the two most widely used cryptocurrencies have resulted in a 4.8 percent pump to the overall cryptocurrency market, lifting it to a recent high of $1.02 trillion as the market attempts to reverse the negative trend it has been in for the entirety of the year.
Other major assets like Solana (SOL), Polkadot (DOT), Ripple (XRP), Cardano (ADA), Binance Coin (BNB), and Avalanche (AVAX) have all experienced rises of 6%, 5%, 3%, 8%, 3% and 11%, respectively, over the past day.
The market rise has caused a sizable amount of liquidation due to traders’ failure to profit from their bets that the price of Bitcoin and other cryptocurrencies will fall over the next 24 hours. Data from Coinglass shows that 63.98 percent of all liquidations are short order liquidations.
87,417 traders from throughout the cryptosphere liquidated their long orders in the last 24 hours, increasing the total amount liquidated to almost $400 million.
The market has been in a dismal mood, especially in the last quarter of the year due to panicked reactions to the Fed’s financial tightening to battle inflation, the bankruptcy of Terra LUNA, the decline of venture capital 3AC, and the liquidation of crypto lender Celsius.
Despite the fact that the third quarter may have begun positively, investors are still avoiding high-volatility assets as a result of the Federal Reserve’s quantitative tightening and regulations, which are seen as a threat to the market.