BTC and ETH Rally as $257 Million Worth of Shorts Get Liquidated

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.