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Cryptocurrencies experienced a rebound on Wednesday, recovering from the previous day’s sell-off, shortly after bitcoin reached an all-time high. Bitcoin saw a 7.2% jump to $66,801.38, while ether saw a surge of more than 12% to $3,793.99, its highest level since January 2022.

The sell-off on Tuesday, which occurred after bitcoin’s record high of $69,210, was seen as a typical correction after a multiyear all-time high, according to Enclave Markets CEO David Wells. He also noted that there may be a second test of the highs and if broken, could lead to interesting movements due to large options positions. These sharp corrections are often related to leveraged long momentum positions taking gains at key levels and getting back in at a lower price.

CoinGlass reported $100 million in short liquidations and $236 million in long liquidations across centralized exchanges in the previous 24 hours. This occurred as traders using leverage to short bitcoin were forced to buy back the cryptocurrency to close their positions as the price rose. This led to an increase in the price and more liquidations. On the other hand, traders betting on a price increase had to sell their assets to cover their losses.

As bitcoin and ether saw a rebound, other cryptocurrencies such as Binance and Solana also surged, with gains of nearly 11% and 7%, respectively. Meme coins, such as dogecoin and Shiba Inu coin, were the biggest gainers, with jumps of 18% and 23%. Crypto-related stocks also saw a rise, with Coinbase, Microstrategy, Marathon Digital, and Riot Platforms all gaining.

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