Crypto Market Cap Nears $3 Trillion as Short Squeeze Fuels Rally

The total cryptocurrency market capitalization has risen by over 5% and is approaching the $3 trillion mark for the first time since January.

This marks a significant resistance area, with Bitcoin peaking at around $93k in January when the market cap reached $3.3 trillion.

The current move may be driven by short covering, as traders liquidated over $900 million in short positions on September 21st, marking the strongest single-day short squeeze in over a month.

This is similar to the August cycle, when a major squeeze led to nearly four weeks of consolidation with Bitcoin remaining below $80k.