Bitcoin bounces to ten-day highs and Ethereum surges above the $1,200 level as the market seeks to reverse the adverse trend it has been in for the entire year.
On July 4, the market had some unexpected gains due to the Independence Day holiday, and Bitcoin has carried on this momentum by surpassing the $21,000 level for the first time in almost two weeks.
According to TradingView statistics, the price of the flagship asset, hit $21,323 on the day on Bitstamp, a 4 percent increase and wiping all its losses over the past two weeks.
The majority of the cryptocurrency markets are also recovering, with the market value of all cryptocurrencies having increased by around $159 billion over the last five days, bringing it up to $925 billion from its previous low of $766 billion.
Major assets including Ethereum, Solana (SOL), Polkadot (DOT), Ripple (XRP), Cardano (ADA), Binance Coin (BNB), and Avalanche (AVAX) have all seen gains from their lows of 40%, 48%, 14%, 21%, 32%, and 49%, respectively.
The market spike has resulted in a substantial amount of liquidation as traders lose their wagers that the price of Bitcoin and other cryptocurrencies will decline over the past 24 hours. Data from Coinglass shows that 83.31 percent of all liquidations are short order liquidations.
36,327 traders from throughout the cryptosphere liquidated their long orders in the last 24 hours, increasing the total amount liquidated to more than half a billion.
Although the cryptocurrency market has had widespread adoption and success and has risen in the financial markets rankings, investors are hoping to put the downward trend behind them at this point because of the year’s forgettable performance.
The Fed’s quantitative tightening and regulation remain the biggest threat to markets right now, and investors are plainly staying away from high-volatility assets, making it difficult to forecast a local bottom at the present.