Carnage on shorts, 300 million dollars wiped out by Bitcoin and Ether
The crypto market reopened the week with a brutal move. Bitcoin surpassed 73,000 dollars on March 16, while Ether regained the 2,200 dollar zone. At the same time, nearly 300 million dollars of short positions were liquidated within 24 hours, which accelerated the rise.
In brief
- Bitcoin and Ether surged, wiping out nearly 300 million dollars of shorts.
- Ether outperformed Bitcoin in this rebound.
- The market is ignoring, for now, the escalation around Iran.
Bitcoin rebounds quickly, Ether follows stronger
Short sellers were caught off guard, and the market accelerated all at once. Bitcoin was trading around 73,240 dollars with an increase of more than 2% over 24 hours. Ether performed better in percentage terms. The second largest crypto on the market was trading around 2,246, up more than 6% to 7% during the session.
This rebound was not limited to the two leaders. CoinGecko and CoinMarketCap show a global market returned to around 2,600 billion dollars in capitalization. This is a sign of a fairly broad awakening of crypto risk.
The immediate engine of this push remains technical. When the bitcoin price rises too quickly, under-leveraged short positions blow up one after another. This forces buybacks, and these buybacks add more upward pressure. It’s the classic domino effect of tense days.
According to the data relayed on March 16, total liquidations approach 350 million dollars, of which nearly 300 million were on short positions. The most striking is elsewhere: shorts on Ether represented the largest share, ahead of those on bitcoin.
In other words, the market did not just climb. It punished some of the traders betting on a new drop. It is often in this kind of session that the tone changes fast, at least in the short term.
The geopolitical context no longer really slows the market
This bitcoin rally surprises because it occurs amid a heavy geopolitical climate. Reuters reports that Donald Trump asked allied countries to help reopen the Strait of Hormuz, while warning that a new strike on Kharg Island remains possible.
Axios adds that the White House is working on a form of “Hormuz Coalition” and that the idea of seizing Kharg Island has indeed been discussed internally. This point matters because the island handles about 90% of Iran’s oil exports.
In theory, such a rise in tensions should cool risky assets. In practice, crypto sends a different message. The market seems to treat this sequence as a shock already integrated. Or at least as a risk that does not yet break speculative appetite. This is where this movement becomes interesting.
What this movement says about the Bitcoin market
For bitcoin, the signal is less euphoric than it seems. Yes, the price has gained height again. Yes, the market shows it can still absorb major macro stress without collapsing. But part of the rise comes from a clearing of short positions, not just calm and structured buying.
For Ether, the message is a bit different. That ETH shorts were the most affected shows that part of the market remained more aggressively bearish on the asset. Its return above 2,200 dollars gives it some breathing room and puts the 2,300 dollar zone back in play.
The real question for bitcoin now remains the following: Does this squeeze open a more lasting bullish leg, or just a violent relief after an excess of pessimism? For now, the answer is cautious. The market has taken control again and whales are beginning to accumulate again, but this recovery will have to be confirmed without the support of forced liquidations.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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