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The crypto market saw a surprise rally early Wednesday, which saw over $600 million in liquidations, sending Bitcoin and altcoins higher.
Over $602 million in futures bets were liquidated in 24 hours, according to CoinGlass data, with bearish short positions accounting for $430 million of the total as the sudden rally reversed the market's downward momentum.
This surge indicated fresh bullish sentiment and a squeeze on those betting against the market, which in turn amplified the price's ascent as traders rushed to close out their losing bets.
The privacy token Zcash (ZEC) spearheaded an altcoin rally, climbing by as much as 25%. Crypto ranking platform CoinGecko highlighted a surge in Zcash's social dominance as it claims the top trending spot among most altcoins.
According to CoinGecko, "ZEC claims the top trending spot today, surging amid the broader market relief rally."
ZEC shorts liquidated
Zcash saw a sharp move on Tuesday, rising from $250 to $324, building on Monday's recovery from a low of $245.
The surge continued on Wednesday, with Zcash reaching a high of $336 on Wednesday. At the time of writing, ZEC was up 25.67% in the last 24 hours to $332 and up 35% weekly.
A short squeeze might have contributed to Zcash's rise, with short liquidations far outweighing long positions. According to CoinGlass data, $12.8 million short positions were liquidated in the last 24 hours, while bullish bets only came in at $906,390.
ZEC's annualized perpetual funding rate is at minus 56%, which indicates traders are aggressively chasing bearish short positions. The privacy token has seen its open interest surge as much as 40% in the last 24 hours to $712.50 million. Its volumes on the derivatives market rose as much as 210% to reach $3.37 billion.
The broader crypto market remains trapped in the same range it has been in since early February despite the recent rally.
Dan Burgin
U.Today Editorial Team
Vladislav Sopov
