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Cryptocurrencies made a strong comeback on Wednesday, making up much of the ground lost in the previous day’s selloffcaused by Bitcoin’s pullback from all-time highs. Bitcoin led the session following significant gains in Ethereum and othermajor altcoins, indicating renewed activity in the market.
Bitcoin rose 7.9% to $67,273.54 on Tuesday, breaking a new record for a short time, according to Coin Metrics. Ethereumrose more than 13% to $3,872.56, reaching its highest level since January 2021. Tuesday’s sell-off comes after Bitcoin broketo an all-time high for the first time since November 2021.
Enclave Markets CEO David Wells says ‘correct adjustment’ after Tuesday’s sell-off for several years It is expected to berepeated at the top, demonstrating the importance of the large option position in the dynamic market.
Market data from CoinGlass shows significant trading in both short and long positions on the centralized exchange, with shortliquidations of $100 million and long liquidations of $236 million in the last 24 hours. This dynamic is attributed to traders usingleverage to close positions during price fluctuations.
Coinbase research department head David Duong pointed out that there is a correlation between the site’s profitabilityand long-term business, which is an indication that aftermarket business is resuming. He is confident that the work willnot have a major external impact in the short term.
Alongside Bitcoin’s comeback, other cryptocurrencies have also made significant gains. Binance Coin increased by 12%,Solana increased by 9.5%, and memecoins such as Dogecoin and Shiba Inucoin increased by 18% and 21% respectively.
Positive momentum continued in crypto-related stocks; Coinbase, Microstrategy and Cipher Mining recorded significantgains. Additionally, mining companies such as Iris Energy and CleanSpark saw significant increases in their share prices.
Despite recent changes, the global cryptocurrency market continues to attract investor interest, driven by continued adoptionand participation in the company. The recovery following Tuesday’s sell-off has revealed the strength and potential of thecryptocurrency space.