Crypto Market Rallies Past $2.6T Amid Massive Short Squeeze
A widespread surge in risk-oriented assets, along with a short squeeze in the cryptocurrency market, enabled Bitcoin and other prominent cryptocurrencies to build on their overnight gains. Overall cryptocurrency market capitalisation has increased to $2.66 trillion, with Bitcoin experiencing fluctuations between $79,326 and $80,879 in the past 24 hours, as markets assessed the potential regulatory implications of the election results on the U.S. crypto sector. The positive sentiment in the cryptocurrency market emerges within the framework of a short squeeze that has caught traders off guard. Data indicates that aggregate crypto liquidations over the past 24 hours have risen to $730 million, an increase from $452 million the day prior. Liquidation of short positions reached $448 million, in contrast to $179 million the day prior. Liquidation of long positions amounted to $282 million, reflecting an increase from $273 million the day prior.
Bitcoin, the largest cryptocurrency, is currently trading 0.32 percent higher on an overnight basis at $79,543.10. Bitcoin is currently experiencing a decline, with losses amounting to 1.2 percent over the past week. On Wednesday, Bitcoin Spot ETF products in the U.S. saw net inflows of $75 million, in stark contrast to the net outflows of $116 million observed on Tuesday. While the market leader iShares Bitcoin Trust ETF experienced outflows amounting to $201 million, Fidelity Wise Origin Bitcoin Trust recorded inflows totalling $237 million. Bitcoin has ascended to the 12th position in the global ranking of all assets based on market capitalisation, as reported. The leading cryptocurrency occupies a position between Meta Platforms, which holds the 11th rank, and Broadcom, positioned at 13th. Ethereum has also gained 0.32 percent overnight to $2,386.27. The leading alternate coin has recorded a 2.2 percent rise over the past week.
On Wednesday, Ethereum Spot ETF products in the U.S. experienced net inflows totalling $53 million, in stark contrast to the net outflows of $85 million noted on Tuesday. iShares Ethereum Trust ETF recorded net inflows amounting to $33 million. Ethereum has ascended to the 61st position in the global ranking of all assets based on market capitalisation, according to source. The fourth-ranked BNB, the native coin of the BNB Chain ecosystem, has increased by 0.01 percent to $710.10. Weekly losses total 4.6 percent. 5th ranked XRP, a payments-focused cryptocurrency, slipped 0.92 percent overnight and is currently trading at $1.3030. The price of 7th ranked Solana experienced a rally of 2.5 percent overnight, reaching $95.17. U.S.-listed Solana Spot ETF products experienced no inflows on Wednesday.
TRON is currently ranked 8th overall, experiencing a decline of 0.37 percent, with a price of $0.3184. In contrast, the 9th ranked Hyperliquid has seen a significant drop of 5.5 percent overnight, now priced at $81.52. On Wednesday, U.S.-listed Hyperliquid Spot ETF products saw net outflows of $2 million, a notable shift from the net inflows of $1 million observed on Tuesday. The 10th ranked Zcash experienced a decline of 1.5 percent overnight, with the cryptocurrency currently trading at $1,303.51. U.S.-listed Zcash Spot ETF products saw net inflows of $3 million on Wednesday, in contrast to the net outflows of $4 million observed on Tuesday.
