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Selim Korkutata | Anadolu Agency | getty images
Cryptocurrencies surged on Wednesday, recouping losses from the previous day’s selloff, which came shortly after Bitcoin hit an all-time high.
Bitcoin According to Coin Metrics, it was last up 6% at $66,315.19 ether It rose more than 11% to $3,785.76, its highest level since January 2022.
On Tuesday, Bitcoin reached a new intraday record of $69,210 for the first time since November 2021. It had been on an upward trend for several weeks – up 55% over the past month – and fell shortly after hitting new highs.
Bitcoin bounced back from Tuesday’s selloff
“Yesterday seemed to me like a fairly sharp correction, which is quite normal when hitting multi-year all-time highs,” said David Wells, CEO of Enclave Markets.
He further added, “There will probably be a second altitude test and if we succeed in that, it could be interesting given the position of the big option.” “These meltdowns include sharp corrections related to leveraged long positions, which take profits at key levels and then fall back to lower levels.”
As of Wednesday morning, centralized exchanges saw $100 million of short liquidations and $236 million of long liquidations over the past 24 hours, according to CoinGlass.
When traders use leverage to short Bitcoin and the price of the cryptocurrency rises, they buy Bitcoin back from the market to close their position, causing the price to rise and liquidating the excess position. Conversely, traders betting on price growth will have to sell their assets to cover their losses.
Other crypto coins made a comeback with Bitcoin and Ether. Binance Whereas, there was an increase of about 11% solana 7% advanced. Meme coins made the most profit – with dogecoin Up 18% and Shiba Inu coin jumped 23%.
Crypto-related stocks also rose. coinbase And micro strategy There was an increase of 5% and 8% respectively. Marathon Digital about 6% advanced and riot platform climbed 5.5%.
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