One article understands the price of ETH, ADA, and DOGE caused large short liquidation of Binance and OKX, setting a new high in previous years

Major altcoins such as DOGE Dogecoin and Cardano (ADA) rose by more than 10%, while Solana's SOL, BNB and XRP rose by at least 7%.

The bull market was driven by market sentiment and a trade deal between the United States and the United Kingdom, and the liquidation amounts of cryptocurrency exchanges Binance and OKX also exceeded $500 million, a record high in history.

More than $750 million short liquidation has been triggered in the past 24 hours

Ethereum (ETH) soared 20%, leading other cryptocurrencies to surge, but it has triggered a large short liquidation in the past 24 hours. This is the highest single-day fluctuation in the bearish market since 2023, which means that several companies are happy and some are sad, some are setting off firecrackers, and some go to the roadside to pick up cardboard boxes and sleep in the park.

More than 84% of total liquidations came from shorts, with major altcoins rising between 10% and 20% in a few hours starting late Thursday, according to CoinGlass.

Ethereum led the rise in other altcoins in this bull market, which was the first time since early March to break above $2,000. Amid the rampant bullish sentiment and momentum trading, DOGE Dogecoin and Cardano (ADA) soared more than 10%, while Solana (SOL), BNB and XRP also rose at least 7%.

When the exchange forcibly closes the trader's leverage position due to insufficient margin, a liquidation situation will occur. When traders are unable to meet margin requirements for leveraged positions, i.e. when they do not have enough funds to maintain the transaction, they will be liquidated by short positions.

Large-scale liquidation may indicate that there are very extreme situations in the market at present, such as panic selling or buying. A series of liquidation may warn of the arrival of a market turning point, and a price reversal may also be coming due to overreaction of market sentiment. Market sentiment surged as the United States and Britain reached a trade deal, with Bitcoin soaring to more than $100,000 on Thursday, and other cryptocurrencies prices rose with the sound.

In April this year, ETH and DOGE also experienced similar rebounds, eliminating short positions of $500 million, but this time the increase exceeded the previous period, showing that the market's risk appetite was rekindled.

The maximum clearance comes from Binance and OKX exchanges

Coinglass data shows that the two exchanges with the largest clearance range are Binance and OKX, among which ETH alone provides clearing up to more than US$310 million, while Bitcoin futures provides clearing amounts of US$375 million, breaking past records.

Due to the decline in retail sentiment, ETH has been in a state of up and down range for several consecutive weeks, so short squeezes have occurred. However, some people also said that Ethereum's recent Pectra upgrade may have encouraged traders to bet again and made investors interested in ETH again.

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