Bitcoin’s (BTC) surge above $28,000 in early trading hours today resulted in approximately $130 million worth of positions being liquidated in the cryptocurrency market. Coinglass data reveals that traders who held positions in the flagship digital asset experienced $55 million in liquidations over the past 24 hours.
Within the last 24 hours, the crypto market witnessed liquidations totaling $129.91 million, with more than 35,000 traders being affected. Coinglass data indicates that short traders incurred losses of $104.45 million, with Bitcoin and Ethereum contributing to over $68 million of these losses. On the other hand, long traders faced liquidations amounting to $25.46 million, with the top two digital assets accounting for over 50% of these losses.
Other assets such as Dogecoin, BNB, Chainlink, XRP, Litecoin, and Solana experienced liquidations below $2 million each.
OKX, Binance, and ByBit were responsible for the majority of the liquidations across exchanges, comprising over 70% of the total liquidations, with 99% of them being short positions. Huobi, Deribit, and Bitmex also recorded a substantial portion of the overall liquidations.
The largest liquidation occurred on Bitmex’s XBTUSD, amounting to $7.29 million.
According to CryptoSlate’s data, BTC breached the $28,000 level barrier, reaching a peak of $28,432. However, at the time of writing, it has retraced to $27,960. Ethereum (ETH) witnessed a 3% increase, while BNB saw a 2% rise. XRP, Cardano (ADA), Dogecoin (DOGE), and other cryptocurrencies also experienced notable gains during the reporting period.
This rally was fueled by news of the U.S. government reaching an agreement on its debt ceiling. On May 28, President Joe Biden described the agreement as a “compromise” and an “important step forward that reduces spending while protecting critical programs for working people and growing the economy for everyone.”
Markus Thielen, the chief researcher at Matrixport, shared a note with CryptoSlate stating that the debt ceiling agreement implies market skeptics will need new reasons to maintain a bearish outlook. He added, “Many investors were concerned about the debt ceiling and the potential default by the U.S. government, although the likelihood of such an event is extremely low. Now, they will need to find something else to be bearish about, as the market is likely to rally.”