The price of Bitcoin saw an increase during yesterday’s trading session, managing to recover slightly from the prior day’s losses that pushed it below $100,000 for the first time since late June.
These declines followed a three-week period marked by a significant sell-off that wiped out billions of dollars from leveraged positions in the cryptocurrency market. Since then, investors appear hesitant to place bets on Bitcoin’s potential recovery.
Bitcoin rose by 1.22%, reaching $101,744, and accounted for approximately 60% of the total cryptocurrency market value.
Ethereum, the second-largest cryptocurrency by market capitalization, increased by around 3.6% to $3,307.83, while Ripple saw a rise of about 4.4% to $2.2493.
According to data from CoinMarketCap, the global cryptocurrency market cap stood at $3.38 trillion, with a total trading volume of $300 billion over the past 24 hours.
Meanwhile, nearly $2 billion worth of cryptocurrency positions were liquidated in the last 24 hours, as reported by CoinGlass. This figure is modest compared to the forced liquidations of $19 billion that triggered last month’s crash.
Open positions in Bitcoin futures remain low, as traders in the options market are betting on further declines through put contracts targeting the $80,000 level.
A note from Krug, a firm in the sector, indicated that traders are still reluctant to return with large bets, as the open interest in perpetual Bitcoin contracts has decreased to around $68 billion, down approximately 30% from its peak in October.
Liquidation waves continue to impact the market, with selling pressure in the past 24 hours alone erasing $1.2 billion from buying positions across various cryptocurrencies, according to CoinGlass data.
Investors withdrew more than $1.8 billion from Bitcoin and Ethereum spot exchange-traded funds over just four trading days.