$270M liquidated from the crypto market in 24 hours, BTC, XRP, SOL, and DOGE lead market recovery

The crypto market is slowly treading towards a price recovery, which has caused investors who had shorted coins to lose over $150 million in the last day. During the period, Bitcoin (BTC), XRP, Solana (SOL), and Dogecoin (DOGE) have all witnessed price upticks of over 2%. DOGE’s 24-hour 6% gain is the highest among the top 10 cryptos by market cap.

According to CoinGlass, crypto liquidations peaked at $270 million, with short positions reaching $127 million by Thursday’s close. About $142 million was liquidated from long traders at the time, but the number trickled down to $82 million after digital currency prices went up.

Bitcoin, which is currently trading 2% more than the previous close, had over $40 million in positions exited, placing it as the most liquidated coin in the last 24 hours. 

Crypto short liquidations up after brief price recovery

Since April 21, most cryptocurrencies have shown signs of a potential trend reversal, supported by growing whale activity across major exchanges. According to CryptoQuant contributor Crypto Dan, whale purchases on Binance grew ahead of each rebound, with similar buying patterns also emerging on US-based Coinbase.

The Coinbase Premium index has been consistently positive this business week after a period of sustained demand from US investors, backed by a more optimistic market. Crypto Dan believes the current patterns mean investors are confident that the market is going beyond short-lived rallies.

Per CryptoQuant’s chart, exchange funding rates turned negative, falling sharply below the -0.0060 mark at around 03:00 PM UTC yesterday. Before the rates tanked, Bitcoin had taken a slight dip below $92,000 and was on track to go down even further, but a price correction pushed the price level back above at around 05:00 PM UTC. 

Within just 10 hours, Bitcoin surged to $93,400, starting a psychological market short squeeze. The -0040 funding rate level has historically signaled the potential for upward moves driven by short liquidations, now almost double the number of long liquidations, per CoinGlass.

Binance’s funding rate is now back above -0.0060, but if crypto prices continue climbing, the market might experience another squeeze as overleveraged short positions risk being flushed out.

Bitcoin’s long-term holders (LTHs) have also increased their collective wealth this month, as the BTC price rallied from $74,450 to $94,900. 

According to on-chain data from CryptoQuant, the realized market capitalization of LTHs rose by $26 billion between April 1 and April 23, going up from $345 billion to $371 billion.

ETH, XRP, and SOL investors hopeful of bull market run

On the altcoin side, Ethereum (ETH) is trading at approximately $1,775.71, seeing a modest daily gain of 1.93%. ETH addresses acquired over 1.1 million ETH in the past week. In the past 48 hours, inflows to derivative exchanges have exceeded 80,000 ETH, which could mean investors are expecting a period of high volatility.

Solana, now changing hands at around $153.77, had a 4.73% intraday increase. The token’s price seems to have benefited from a $500 million institutional investment announced by Sol Strategies late Tuesday.

The recent closure of the SEC lawsuit against Ripple has helped XRP stick above the $2.1 threshold, and the token is up by 1.86% on the day.

The overall crypto market rally started on Monday, but a more defined uptrend came on Wednesday evening after US President Donald Trump stated he has “no intention of firing Fed Chair Jerome Powell,” after he threw some digs at the Fed chair last weekend.

Away from digital currencies, US stock futures posted modest gains Friday pre-market open sessions, with S&P 500 and Nasdaq-100 contracts ticking higher, while Dow Jones Industrial Average futures hovered near the flatline.