According to data provided by analytics platform CoinGlass, roughly $259 million worth of shorts have been liquidated over the past four hours alone.
The prices of major cryptocurrencies have recovered, with Ethereum (ETH) soaring to an intraday high of $4,151.
Meanwhile, Bitcoin, the largest cryptocurrency, has reclaimed the $114,000 level, according to CoinGecko data.
Key reason behind the rally
The recent recovery comes after the trade tensions between the U.S. and China seemingly de-escalated.
Earlier this week, the market endured a severe crash after the White House announced 100% tariffs on the world’s second-largest economy.
However, the US is now seemingly walking back the threat, pushing cryptocurrencies sharply higher.
Many analysts (correctly) suspected that the most recent escalation would be a repeat of the post-Liberation Day mayhem. Back then, a massive escalation in trade tensions between the two superpowers was also resolved with a detente.
More liquidations
On Oct. 10, roughly $17 billion worth of crypto got liquidated in one day after plenty of major altcoins plunged by more than 50% in virtually no time.
Now, the shorts are the ones that are getting liquidated following the White House’s latest China U-turn, which was rather predictable.
Binance, the leading cryptocurrency exchange, accounts for the biggest share of the liquidated sum (nearly 30%).
Hyperliquid and Bybit come in second and third places, respectively (21% and 19%).
That said, it remains to be seen whether this rally will be sustainable.
