Crypto Market Sees $2B in Liquidations as US Treasury Buyback Sparks Short Squeeze
The cryptocurrency market has experienced nearly $2 billion in liquidations over the past 24 hours, its largest since February 5. This significant increase in liquidations was triggered by a short squeeze, which forced traders who had bet on a price drop to buy back into the market to cut their losses.
According to Coinglass data, the top cryptocurrency Bitcoin (BTC) gained over 5% and reached its highest level since June 2, with prices exceeding $68,000. Ethereum (ETH), meanwhile, saw a 9% jump, climbing past the $2,000 psychological level for the first time since June 1.
The US Treasury's decision to double its debt buyback operation from September 4 through November 4 is believed to have contributed to the short squeeze. This move caused a decline in bond yields, which in turn improved the wider crypto market sentiment. The CMC Crypto Fear and Greed Index has jumped from near-Fear territory at 41 to Neutral at 51, its highest level since mid-May.