The price of bitcoin (BTC) staged a rebound in the last 24 hours, surpassing the $71,000 barrier. This bullish movement, which was replicated by several cryptocurrencies, caused the liquidation of $474 million belonging to investors who operated with leverage.
The vast majority of these losses affected those who held bearish positions, also known as «shorts» or shortbeing surprised by the change in trend.
Below, the CoinGlass chart shows the liquidations that occurred in the mentioned period. The metric includes trades in all digital assets, not just bitcoin.
Mass liquidation occurs when exchanges automatically close users’ trades. This happens because the price of the asset moves in the opposite direction to the trader’s bet and the trader no longer has enough collateral to keep the position open. On this occasion, the increase in bitcoin forced the closure of traders who were expecting a drop in prices..
The direct trigger for this increase was the announcement made by the president of the United States, Donald Trump, about a bilateral ceasefire with Iran.. This pact establishes an initial two-week truce in hostilities between both nations.as reported by CriptoNoticias.
Such news generated immediate relief in global markets, reducing uncertainty and encouraging the inflow of capital into assets considered “risky” such as digital assets.
It is essential to understand that this measure It does not represent a definitive peace treaty, but rather a negotiated pause under strong international pressure. The agreement contains various technical and military conditions that have not yet been resolved by any of the parties involved.